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(Reuters) -Whirlpool Corp said it would more than halve its stake in its Indian unit to about 20%, sending Whirlpool of India's shares plunging an exchange-allowed maximum of 20% to a near ten-month low on Thursday.
The U.S.-listed home appliance maker, which currently has a 51% stake in the India unit, said it estimates net cash proceeds of $550 million to $600 million from the sale, which it expects to close by mid-to-late 2025.
The company will remain Whirlpool of India's largest shareholder, followed by a number of mutual funds with stakes of less than 10%.
Whirlpool Corp sold a 24% stake in the Indian unit for about $468 million last year and the latest sale comes as it aims to pay off a major chunk of its debt amid a major rejig of its global assets, including folding its European business into a new firm and selling its Middle Eastern and African businesses.
Whirlpool Corp, which has dues worth $1.85 billion in 2025, also said it expects to pay down about $700 million after the stake sale.
"In 2025, our clear capital allocation priorities along with the anticipated India transaction will maximize shareholder value and further strengthen our balance sheet," Whirlpool Corp said.
Whirlpool of India's stock crashed on Dec. 1, 2023, after Whirlpool Corp said it would sell the 24% stake. But, since then, it recovered all those losses as of its close on Wednesday.
The stock was last trading at 1,260.80 rupees on Thursday afternoon, about 20% lower since Whirlpool announced its first stake sale and 64% off analysts' average 12-month price target for the stock, per LSEG data.
(Reporting by Ashish Chandra in Bengaluru; Editing by Subhranshu Sahu and Savio D'Souza)