Whirlpool India’s stock plunged 20% after a major announcement. What triggered this massive drop? Find out!
Whirlpool Corporation, the US-based parent, plans to cut its stake in Whirlpool India from 51% to 20% by 2025.
Last year, Whirlpool Corp sold a 24% stake for $468M to reduce debt. Now, it plans another divestment.
Whirlpool Corp CEO Marc Bitzer said high valuations led to this decision but assured they are not leaving India.
Despite the sell-down, Whirlpool India will continue operations, and the parent company remains its largest shareholder.
Whirlpool Corp expects to gain $550M-$600M from this transaction, strengthening its balance sheet.