Castrol India: Motion JVCo, Stonepeak and CPPIB make 26% open offer

Motion JVCo Limited, along with Stonepeak and Canada Pension Plan Investment Board (CPPIB), has made an open offer to acquire up to 26% equity stake in Castrol India Ltd, according to a public announcement

filed with the stock exchanges.

The open offer is for the purchase of up to 25.71 crore fully paid-up equity shares of face value ₹5 each at a price of ₹194.04 per share, representing 26% of Castrol India’s equity share capital. The offer is being made in compliance with SEBI’s takeover regulations following an indirect acquisition triggered by a global transaction.

Ahead of the announcement, shares of Castrol India ended 1.81% higher at ₹189.30 on the NSE.

Also Read: Castrol India shares surge 8% after BP agrees to sell majority stake in parent

Earlier in the day, the stock had surged over 8% after reports emerged that British Petroleum (BP) had agreed to sell a 65% stake in Castrol to Stonepeak at an enterprise value of about $10 billion.

BP said the transaction would generate net proceeds of nearly $6 billion, including accelerated dividend payments, which will be used to reduce net debt towards its target range of $14-18 billion by end-2027. BP’s net debt stood at $26.1 billion at the end of the September quarter.

The deal follows BP’s strategic review of Castrol and values the business at an enterprise value of $10.1 billion, implying an EV-to-LTM EBITDA multiple of around 8.6x. At the end of the September quarter, BP had already sold a 51% stake in Castrol India. LIC holds a 10% stake in the company, while the Government of Singapore owns 1.33%. Retail shareholders collectively hold about 16.6%.