ZF Commercial Vehicle Control Systems India Ltd is set to see a significant block deal as promoter WABCO Asia plans to offload 3.5% equity in the company, raising up to $98 million, according to CNBC-TV18. The transaction is expected to take place on Wednesday, November 27, at a floor price of ₹12,400 per share, marking a 14% discount to the closing price of ₹14,468.95 on Tuesday.
Key Points:
- Promoter Stake Sale:
- WABCO Asia currently holds a 67.49% stake in ZF Commercial as of September 2024.
- The proposed sale will reduce its holding further after a similar transaction earlier this year.
- Book Runner:
- Citigroup Global Markets is managing the block trade as the sole book runner.
- Previous Stake Sale:
- In June 2024, WABCO Asia sold 5% equity in the company for ₹1,423.1 crore at a floor price of ₹14,980, which was a 13.3% discount to the market price at the time.
- The remaining stake was subject to a 120-day lock-up period, which has now expired, paving the way for the latest sale.
This development highlights ongoing efforts by WABCO Asia to divest its stake in ZF Commercial, creating opportunities for institutional investors to enter at a discounted price. The market reaction and investor participation will determine the success of this block deal.
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