Johnson Controls plans to acquire 25.74 percent stake in Hitachi Home & Life Solutions (India) Ltd through an open offer for an estimated price of Rs 575 crore.
In a public announcement to Hitachi's shareholders, Johnson Controls said it would acquire little over 70,00,990 shares at an offer price of Rs 821.38 per share amounting to Rs 575.04 crore.
In a BSE filing, the company has proposed to launch open offer to acquire "up to 70,00,990 fully paid-up equity shares of face value of Rs 10 each of the target company representing 25.74 percent of fully diluted voting equity share capital."
Last week, Johnson Controls and Hitachi Appliances had entered into a definitive agreement to form a global joint venture (JV) for heating, air conditioning, ventilation and refrigeration (HVAC).
Post completion of the open offer, the JV company, either directly or through one or more subsidiaries, will hold 74.25 percent of the target company, the company added. As per the agreement, Johnson Controls will obtain a 60 percent ownership in Hitachi Appliances. The deal excludes sales and service operations in Japan.
Hitachi Appliances will continue to provide Hitachi branded HVAC products in the Japanese market after this transaction, the company said in a statement.
The transaction is expected to close later this year, subject to regulatory approvals and satisfaction of other customary conditions.
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