Whirlpool intends to bring down stake in India unit to around 20% in 2025

It currently holds 51% stake

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Whirlpool Corporation has announced in its earnings presentation that it intends to bring down its stake in Whirlpool of India to around 20 per cent from 51 per cent by late 2025.

 

This will be through a market sale.

 

It also said it intended to generate $550-600 million from the stake sale.

 

“In 2025, our clear capital allocation priorities along with the anticipated India transaction will maximise shareholder value and further strengthen our balance sheet,” Jim Peters, chief financial and administrative officer, was quoted as saying in the release.

 

The release also said its capital-allocation priorities demonstrated the company’s commitment to strengthen its balance sheet and expected to pay debt approximately of $700 million in 2025.

 

Shares of Whirlpool of India closed 20 per cent down at Rs 1,260.80 on the National Stock Exchange after the announcement of the US-based home appliances major’s announcement of stake reduction.

 

Last year, the parent had sold nearly 24 per cent in the Indian entity to pare down debt.

 

It also said in its presentation that it would focus on growth acceleration to deliver Whirlpool of India shareholder value. It added the Indian entity was well equipped to support critical investment. 

 

The company said that India had one of the fastest growth rates globally, and it expected MDA Asia industry volumes to continue accelerating at 3-5 per cent in 2025.

 

Peters also told investors: “We continue to believe Whirlpool of India has a strong long-term trajectory for growth. This transaction will enable Whirlpool of India to focus on growth acceleration as an independent business, along with utilising their well-funded business to invest further in products and innovation.”

 

He added: “We believe these actions will also deliver value to Whirlpool of India shareholders. This transaction is expected to not only accelerate growth in Whirlpool of India, but also allow us to utilise the $550 million to $600 million of net cash and cash generation towards our debt repayment.”