Mumbai, May 15

German chemicals major BASF SE is set to increase stake in its Indian arm up to 75 per cent, a move that would give it more freedom to invest and expand its businesses in the country.

The parent company at present holds 52.69 per cent in BASF India Ltd and will make a voluntary open offer to local shareholders to mop up another 22.31 per cent, the company said.

Multinational companies have been increasing their stake in their Indian subsidiaries through buy back of shares and open-market purchases to shore up their share-value. BASF could be among the recent instances of a voluntary open offer to increase its stake and ensure more operational flexibility.

Increasing the stake to a maximum of 75 per cent will give the company more freedom when it comes to investments, the BASF SE spokesperson, Mr Gareth Rees, told Business Line.

India, like China, is an important market and features on the company’s plan to invest 20 per cent of its capital expenditure in the Asia-Pacific region, he said. This investment projection is about €2.5 billion in the region between 2008 and 2012, he added.

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