Otis Intends To Take Zardoya Private By Buying It Out

(RTTNews) - Elevators and escalators maker Otis Worldwide Corporation (OTIS) on Thursday said it has issued a tender offer to acquire the remaining 49.99% shares of Zardoya Otis, S.A., an elevator business in Spain and Portugal, for 7 euros per share to be paid in cash.

The offer price represents a premium of 28.9% to the Company's 1-month volume weighted average price implying a total equity value for Zardoya Otis, including Otis' existing interest, of 3.3 billion euros.

Otis intends to take Zardoya private following its acquisition through Opal Spanish Holdings, S.A.U., a unit of Otis.

Otis said, the deal is expected to add mid-single digit percentage to its adjusted EPS, starting 2023. In 2022 EPS accretion is estimated to be in the range of 3 to 5 cents depending on the timing of the close and the pace of the acquisition.

The transaction is expected to close in the second quarter of 2022.