Offer to increase stake in In

RNS Number : 0122M

ABB Ltd

17 May 2010

 



ABB offers to increase stake in India subsidiary

Zurich, Switzerland, May 17, 2010 - ABB, the leading power and automation technology group, announced today that it will offer shareholders of ABB Limited, its publicly-listed subsidiary in India, Rs. 900 per share in order to increase its stake in the company from approximately 52 percent to 75 percent.

The aim of the investment is to facilitate the long-term development of ABB's business in India.

The offer represents a premium of approximately 34 percent of Friday's closing price and 14 percent over the mandatory floor price required under Indian regulations. The potential total value of the transaction at the offer price is approximately Rs. 44 billion ($965 million)

Subject to regulatory clearance, the offer is expected to begin on July 8, 2010 and end on July 27, 2010. Payment for the shares is expected to take place on August 10, 2010. The shares are traded on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited.

In 2009, ABB Limited, India, reported revenues of Rs. 63 billion ($1.4 billion) and profit before tax of Rs. 5.3 billion ($117 million). The company employs approximately 6,200 people.

The open offer will be managed by HSBC Securities and Capital Markets (India) Private Limited.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 117,000 people.

More information

ABB will host a conference call for media and analysts starting at 14:00 Central European Time (CET). Callers from the countries below should dial:

U.S. or Canada    [phone]

United Kingdom  [phone]

Sweden                 [phone]

Rest of Europe     [phone]

Callers are requested to phone in 15 minutes before the start of the call.

The audio playback of the call will start one hour after the end of the call and be available for 24 hours commencing one hour after the conference call. Playback numbers: [phone] (U.S./Canada), [phone] (U.K.) or [phone] (rest of the world). The code is 13093, followed by the # key.

For more information please contact:

ABB Group Media Relations:

Wolfram Eberhardt, Thomas Schmidt

(Zurich, Switzerland)

Tel: [phone]

[e-mail]

Investor Relations:

Switzerland: Tel. [phone]

Sweden: Tel. [phone]

USA: Tel. [phone]

[e-mail]

ABB Ltd

Affolternstrasse 44

CH-8050 Zurich, Switzerland

HSBC Securities and Capital Markets (India) Private Limited:

India: Tel. [phone] 

[e-mail]

 

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