McGraw Hill announces share buy-back offer in Crisil

MUMBAI: McGraw Hill Financial the promoters of credit rating agency Crisil on Monday announced a voluntary open offer to acquire up to 1.57 crore shares, representing 22.23% of the total equity shares outstanding in CRISIL at Rs 1210 apeice. Full acceptance of the offer would increase McGraw Hill Financial’s total stake in CRISIL to 75% from 52.77%.

The cash offer of Rs 1210 or $21.42 per share represents a premium of 29% to the closing share price on May 31, 2013, and a premium of 12% to CRISIL’s all-time closing high on the National Stock Exchange. The offer also provides an attractive liquidity opportunity to current CRISIL shareholders. CRISIL’s stock had an average daily trading volume of 32,551 shares cumulatively on the NSE and BSE during the last 12 months.

"The offer to increase our investment in CRISIL represents a vote of confidence in CRISIL, its Board of Directors, leadership team and talented employees, as well as the products and services CRISIL brings to market. The offer also represents a vote of confidence in the growth prospects of India and the other markets that CRISIL serves," said Harold McGraw III, Chairman, President and CEO of McGraw Hill Financial.

"We intend to keep CRISIL a listed public, independent company to maintain the company’s leadership and essential role across the Indian economy, and to preserve the entrepreneurial, growth-oriented spirit of the high-performing CRISIL team."