Ingersoll-Rand announced Aug. 10 it intends to purchase the outstanding publicly held shares of its subsidiary Ingersoll-Rand India. The company, which currently owns 74 percent of Ingersoll-Rand India’s shares, said in a press release it seeks to obtain full ownership in order to consolidate its India-based subsidiaries and provide increased operational flexibility.
In accordance with the delisting guidelines prescribed by the Securities and Exchange Board of India, Ingersoll-Rand said it intends to acquire the outstanding shares through a shareholder-led reverse book building process. Shareholders of Ingersoll-Rand India may tender their shares to Ingersoll-Rand at a price at or above the “floor price” — the average price of the company’s shares as quoted on the National Stock Exchange in the 26 weeks preceding the date of the public announcement. The company said it is prepared to acquire the offered shares at a price higher than the highest closing price of Ingersoll-Rand India shares for the past five years.