The report notes that while retaining a 20 per cent equity stake in Whirlpool of India, Whirlpool Corp is divesting a 31 per cent stake in the company
In an effort to acquire a controlling interest in Whirlpool of India, Reliance Retail and Havells India have shown interest and would compete with several buyout funds like EQT and Bain Capital, as per the media reports.
The reports noted that as financial sponsors EQT and Bain Capital have been shortlisted after screening, the two stated companies will compete with them. TPG Capital has also initiated the due diligence, it added.
While retaining a 20 per cent equity stake in Whirlpool of India, Whirlpool Corp is divesting a 31 per cent stake in the company, which generates 85 per cent of its Asia revenue. The reports noted that the equity in the country is held through Whirlpool Mauritius.
The monetisation effort is part of a global restructuring that began in late 2022, after the company, known in the United States for its namesake brand along with KitchenAid and Maytag, reported a USD 1.5 billion loss. It has already reshaped its global portfolio by scaling back operations in key Asian markets and parts of Europe, the reports highlighted. Whirlpool Corp has also intensified its cost-cutting measures and workforce reductions.
The reports change of control transaction will also prompt an open offer for an additional 26 per cent stake from public shareholders of the company. As per the reports, if fully subscribed, the incoming investor could secure a 57 per cent ownership.
