NEW DELHI, Dec 24: Shares of Castrol India jumped 9 per cent on the bourses on Wednesday after BP plc announced that it will sell a 65 per cent stake in the lubricants maker to Stonepeak for USD 10 billion.
On the BSE, the scrip of the company was trading 8.9 per cent higher at Rs 202.50 apiece in the afternoon session.
Similarly, Castrol India’s shares jumped 8.86 per cent to Rs 202.40 per share on the NSE.
Global energy giant BP Plc on Wednesday said it has reached an agreement to sell a 65 per cent shareholding in Castrol to Stonepeak, at an enterprise value of USD 10.1 billion.
The transaction represents a milestone in BP’s commitment to accelerate its strategy, including simplifying the portfolio, strengthening the balance sheet, and focusing the downstream on its leading integrated businesses, the company said.
“A significant proportion of Castrol JV minority interests relate to the shareholding in the publicly listed Castrol India Ltd,” the company said in a statement.
After the completion of the stake sale, a new joint venture will be incorporated, comprising a 65 per cent Stonepeak and 35 per cent Bp ownership.
Carol Howle, interim CEO at BP, said: “Today’s announcement is a very good outcome for all stakeholders. We concluded a thorough strategic review of Castrol, which generated extensive interest and resulted in the sale of a majority interest to Stonepeak”.
She further stated that the transaction allows us to realise value for our shareholders, generating significant proceeds while continuing to benefit from Castrol’s strong growth momentum.
US-based Stonepeak is a leading alternative investment firm specialising in infrastructure and real assets with approximately USD 80 billion of assets under management. (PTI)
Follow our WhatsApp channel
