The Hindu Business Line : S&P hikes offer price for Crisil to Rs 775

THE global rating agency Standard & Poor's has raised the price of its open offer for Crisil's share to Rs 775. The offer was earlier priced at Rs 680 per share.

At the same time, S&P has also increased the offer size by 10 percentage points to 65.57 per cent of the company's equity. This is the final offer as the last day for revisions is April 11, according to a company press release issued on Sunday.

"While we believe the original offer price was attractive and fair to Crisil shareholders, we remain committed to achieving our goal of becoming a majority shareholder. Because this is a conditional offer, we increased the price, which is now more than fully priced, to ensure we achieve our stated goal. At this level the new offer, together with the increased size, provides a larger number of shareholders the opportunity to utilise what we consider is an attractive exit," Ms Kathleen A. Corbet, President of S&P, was quoted in the release.

The McGraw-Hill Companies Inc, on behalf of its Standard & Poor's division, made a voluntary conditional open offer to the shareholders of Crisil on February 17.

Under the revised offer, S&P is seeking to purchase up to 41.7 lakh shares, subject to a minimum response level of 26.4 lakh shares at the revised price of Rs 775 a share. The conditional offer, if accepted in full by Crisil shareholders, would make S&P the majority shareholder of Crisil with 75 per cent of the voting capital.

The revised price represents a premium of 55.74 per cent over the 26-week statutory price and a 34.53-per cent premium over the 2-week statutory price, the release said. Shareholders who have tendered at Rs 680 will also be eligible for this new price of Rs 775. The offer opened on April 6 and will close on April 25.

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