19
NEW DELHI: Shares of WABCO India jumped 11 per cent on Friday as the company entered into a definitive merger agreement with ZF Friedrichshafen AG, a privately-held global leader in driveline and chassis technologies.
The scrip surged 11 per cent to hit a high of Rs 7082.65.
Later, the scrip was hovering at Rs 6793.45, up 6.77 per cent at 10:00 am.
This was against 0.18 per cent rise in the BSE Sensex.
Under the agreement, ZF will acquire all outstanding shares of WABCO for $136.50 per share in an all-cash transaction for an equity value of over $7 billion, the company said in a BSE filing.
The acquisition price represents a 13 per cent premium to the closing stock price of $120.75 on February 26, 2019, the date prior to media reports and WABCO's confirmation that ZF had approached the company.
The transaction also represents a premium of approximately 18 per cent and 23 per cent to the undisturbed Volume Weighted Average Price (VWAP) for the 30 and 90 days ended February 26, 2019, respectively.
"The transaction will bring together two global technology leaders serving OEMs and fleets in the automotive and commercial vehicle industry, combining WABCO's capabilities in commercial vehicle safety and efficiency, including technologies involved in vehicle dynamics control, active air suspension systems, and fleet management systems with ZF's leading position in driveline and chassis technologies for cars and commercial vehicles," the company added.
Earlier in the day, the stock opened at Rs 6750 on BSE against its previous closing of Rs 6362.60.
