Wabco India surges 11 per cent
Wabco India’s parent company, Wabco Holdings Inc., a US-based company listed on the NYSE, has plans to merger with ZF Friedrichshafen AG, a privately-held global leader in driveline and chassis technologies. Reacting to this development, the stock of Wabco India soar more than 10 per cent, on Friday.
Wabco Holdings Incorporated entered into a definitive merger agreement with ZF Friedrichshafen AG on March 28, 2019, the company said in a press release issued on Friday. ZF Friedrichshafen will acquire all outstanding shares of Wabco for an equity value of over US$ 7 billion, at US$ 136.50 apiece, which represents a 13 per cent premium to the closing stock price on February 26, 2019. This acquisition is likely to get completed in early 2020 and is subject to approval by Wabco's shareholders, customary closing conditions and regulatory approvals.
Reacting to this, the stock of Wabco India is coming under investors' radar as under SEBI guidelines, acquirer ZF Friedrichshafen will have to make an open offer for public shareholders.
In Friday’s morning session, the stock of Wabco India was up by nearly 11 per cent to touch an intraday high of Rs. 7,082.65 per share. At 12.07 hours, the stock was trading at Rs. 6,800 apiece, up by nearly 6.9 per cent from its previous close.