Wartsila Offers Rs 120/ Share For 49% Of Indian Subsidiary

Wartsila Corporation & Wartsila Technology, the Finnish promoters of Wartsila India, have made an open offer for the remaining 49 per cent in their Indian subsidiary, at a price of Rs 120 per share. The Wartsila group will have to shell out approximately Rs 70 crore ($15.04 million) to buy out the outstanding 49 per cent stake in the company at the offer price.

The promoters currently have 51 per cent stake in the company.

Domestic financial institutions and mutual funds together hold about 19 per cent, while the individuals and others have about 26 per cent in the company.

A company by the name Benaras House has the remaining 4 per cent.

The offer price for the power equipment manufacturer is a 73.78 per cent premium to yesterday's (Wednesday) closing price of Rs 69.05 on the Bmbay Stock Exchange.

Consequently, the scrip rose almost 20 per cent today to close at Rs 82.85. A total of 61,099 shares of Wartsila were traded on the BSE today.