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Stonepeak, CPPIB Launch Rs 4,990 Crore Open Offer for 26% of Castrol India After BP Deal

The move follows BP’s plan to shift control of Castrol to Stonepeak in a $10 billion deal to help cut debt.

Overview

  • Motion JVCo with Stonepeak and CPP Investment Board filed to buy up to 25.71 crore Castrol India shares at Rs 194.04 each, a small premium to the prior close.
  • Castrol India stock rose as much as 4.4% to an intra-day high of Rs 197.95 following the announcement.
  • The tender size implies a potential payout of about Rs 4,990 crore to public shareholders at the offer price.
  • Under SEBI rules, the offer follows a change of control at the parent level; if fully successful, the new owners could hold up to 77% of Castrol India.
  • BP agreed to sell 65% of Castrol to Stonepeak at an enterprise value near $10.1 billion, expects roughly $6 billion in net proceeds, and will retain a 35% stake.