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Federal-Mogul Goetze (India) spurts after Pegasus announces open offer

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Capital Market
Last Updated : Feb 24 2022 | 10:04 AM IST

Federal-Mogul Goetze (India) jumped 8.14% to Rs 271.70 after Pegasus Holdings III, LLC, made an open offer to buy 25.02% of the fully diluted voting share capital of the company.

Pegasus Holdings III, LLC will acquire up to 1,39,16,676 fully paid-up equity shares (25.02% equity) at Rs 275 per offer share aggregating to a total consideration of up to Rs 382.8 crore.

The open offer was triggered due to the merger between Pegasus Merger Co and Tenneco Inc, the ultimate holding company of Federal-Mogul Goetze (India).

Tenneco Inc. on 23 February 2022, entered into an agreement to merge with Pegasus Merger Co., a corporation established under the laws of Delaware ("Merger Sub") and a direct wholly owned subsidiary of Pegasus Holdings III, LLC (the "Parent").

Effective upon the closing of the transactions, Merger Sub will merge with and into Tenneco Inc., with Tenneco Inc. continuing as the surviving corporation and a direct wholly owned subsidiary of the Parent.

Tenneco holds a 100% stake in Federal-Mogul Mauritius and Federal-Mogul Germany under subsidiaries. Federal-Mogul Mauritius and Federal-Mogul Germany are the promoter companies of Federal-Mogul India. Promoter holds a 74.98% stake in Federal-Mogul India. Pegasus will hold a 74.98% stake in Federal-Mogul India after the merger of Pegasus Merger Co and Tenneco Inc.

Federal-Mogul Goetze (India) makes pistons, piston rings, sintered parts and cylinder liners covering a wide range of applications including two/three-wheelers, cars, SUVs, tractors, light commercial vehicles, heavy commercial vehicles, stationary engines and high output locomotive diesel engines. It is a market leader both in OEM and aftermarket. It exports to many countries.

On a consolidated basis, net profit of Federal-Mogul Goetze (India) declined 70.65% to Rs 10.22 crore on 8.92% decline in net sales to Rs 324.96 crore in Q3 December 2021 over Q3 December 2020.

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First Published: Feb 24 2022 | 9:46 AM IST

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