Castrol India’s shares jumped 5% in today’s trading session, after Motion JVCo, Stonepeak, and CPP Investment Board launched an open offer to acquire a 26% stake in the company. 

The company's shares were trading at Rs 198.13 apiece, extending gains for the second consecutive session. 

“An open offer is being made for acquisition of up to 25,71,71,820 fully paid-up equity shares offace value of Rs 5  each representing 26% of the equity share capital of the target company from the public shareholders of the target company for Rs 194.04 per equity share by Motion JVCo Limited (the "Acquirer") along with Stonepeak Motion Holdco Limited ("PAC l"), Stonepeak Infrastructure Fund V Cayman (AIV I) LP ("PAC 2"), Stonepeak Infrastructure Fund V (Lux) (AIV I) SCSp ("PAC 3") and CPP Investment Board Private Holdings (6) Inc., in their capacity as persons acting in concert with the Acquirer for the purpose ofthe Open Offer,” the statement read. 

The said price is a premium of about 2.5% over the previous closing price of Rs 194.04 apiece.

This announcement comes after BP announced that it has reached an agreement to sell a 65% shareholding in Castrol to Stonepeak, at an enterprise value of $10.1 billion.  The transaction is expected to result in total net proceeds to BP of approximately $6.0 billion, which includes around $0.8 billion for the pre-payment of future dividend income over the short to medium term on BP’s retained 35% stake and other adjustments. 

The implied total equity value of Castrol is $8.0 billion after deducting JV minority interests totalling $1.8 billion, and other debt-like obligations of around $0.3 billion, and subject to customary adjustments. A significant proportion of Castrol JV minority interests relates to the shareholding in the publicly listed Castrol India Limited.

Stock price history:

Shares of Castrol India have risen by 6.53% over the past week and 1.43% over the past month. On a year-to-date basis, however, the stock has declined 4.40% and 1.03% in a year. The stock had hit a 52-week high in March this year, at Rs 251.95 apiece, and a 52-week low of Rs 162.60 in January this year.