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Otis deal to buy the near-50% of Zardoya Otis it doesn't own values Zardoya at $3.9 billion

Otis Worldwide Corp. (OTIS) announced Thursday an agreement to buy the 49.99% of Zardoya Otis S.A. in a deal valuing Zardoya at EUR3.3 billion ($3.87 billion). Under terms of the deal, the elevator and escalator maker said it will pay EUR7.00 in cash for the outstanding Zardoya shares, representing a 30.8% premium to Wednesday's closing price of EUR5.35. Otis's stock was still inactive in premarket trading, while Zardoya's Spain-listed shares soared 31.4%. Otis plans to delist Zardoya. "While we have deep respect for Zardoya Otis' heritage, delisting the Company will simplify Otis' corporate structure, provide for more streamlined management of the business, and generate operational efficiencies for both businesses," said Otis Chief Executive Judy Marks. Otis shares have rallied 24.8% year to date, while the S&P 500 has gained 17.0%.

-Tomi Kilgore

 

(END) Dow Jones Newswires

09-23-21 0613ET

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