Whirlpool Corp. announced on Thursday that it would sell up to a 24% stake in Whirlpool of India Ltd. in 2024.
The parent company will enter into one or more transactions to sell its ownership interest. Whirlpool will retain a majority interest in the Indian unit following completion of the stake sale, according to an exchange filing.
The company currently maintains a 75% ownership interest in Whirlpool India through a wholly owned subsidiary.
The proceeds from the transaction will be used to reduce debt levels, which will enhance balance-sheet flexibility. The proceeds expected to be used for debt repayment are incremental to the $500 million term loan repayment that it previously disclosed to pay in the fourth quarter of 2023, it said.
India continues to be a significant marketplace for growth and is an integral part of its growth strategy, it said. "The company remains committed to expanding the business with new product launches and the recently acquired Elica India business."
This announcement will not impact the previously issued full-year guidance, the company said.
Shares of Whirlpool of India closed 1.64% higher at Rs 1,571.25 apiece on the NSE compared to a 0.18% advance in the benchmark Nifty 50.
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