Moody’s Offers to Increase Its Stake in India’s ICRA to 55%

Moody’s Offers to Increase Its Stake in India’s ICRA to 55%

ICRA is a Provider of Credit Ratings and Research in Region’s Emergings Markets

ERIN MCCARTHY

Feb. 21, 2014 8:44 a.m. ET

Moody’s Corp. MCO -0.16% unveiled plans to seek a majority stake in ICRA Ltd.532835.BY +4.18% , a provider of credit ratings and research in India, through a tender offer.

Moody’s, a ratings and analytics company, offered to acquire up to 2.65 million shares of ICRA at a price of 2,000 Indian rupees (about $32.19) a share, a 26% premium over ICRA’s closing price on the National Stock Exchange of India Ltd. on Thursday. The offer represents a 22% premium to ICRA’s record-high closing price at the end of last year, Moody’s said.

Full acceptance of the offer would boost Moody’s ownership stake in ICRA to about 55%, from 28.5% currently, Moody’s said in a statement. The offer is conditional upon Moody’s acquiring at least 2.15 million shares, which would increase its ownership stake to slightly more than 50%.

Moody’s, which relies on its debt-rating operation for the vast majority of its income, said it would fund the offer from international cash on hand and the tender period is expected to begin in April, subject to review of the deal by Indian regulatory authorities.

“We look forward to expanding and deepening our collaboration with ICRA as it provides research and ratings for the growing domestic debt market in India as well as other emerging markets in the region,” said Moody’s President and Chief Executive Raymond McDaniel.

Earlier this month, Moody’s reported its fourth-quarter profit jumped as revenue grew in its structured finance segment. The company’s shares have risen about 6% in the past three months.

 

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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