Otis Worldwide To Tender Full Stake In Zardoya Otis In EUR 3.39 Bln Deal - Quick Facts

(RTTNews) - Otis Worldwide Corp. (OTIS) announced Monday that its wholly-owned subsidiary, Opal Spanish Holdings, S.A.U., has reached an agreement for Euro-Syns, S.A. to irrevocably tender its shares in the voluntary tender offer for Zardoya Otis, S.A. at an offer price of 7.14 euro (7.07 euro after adjusting for announced dividends).

The price of Opal's tender will be subject to further adjustments for dividends and other distributions to be declared and paid by Zardoya Otis. The offer price pre-dividends represents a premium of 33% to the Company's one-month volume weighted average price as of September 23, the date the offer was first announced, implying a total equity value for Zardoya Otis, including Otis existing interest, of 3.39 billion euros.

The transaction is structured as an all-cash voluntary tender offer with an intention to delist Zardoya Otis from the Madrid, Barcelona, Bilbao and Valencia Stock exchanges and is expected to close in the second quarter of 2022, subject to its approval by the Spanish Securities Exchange Commission.

Starting 2023, the transaction is expected to be up to mid-single digit percentage accretive to Otis' adjusted earnings per share.

Given the timing of the close and the pace of the acquisition of shares, 2022 earnings per share accretion is expected to be in a range of 3 to 5 cents. Otis obtained permanent debt financing for the transaction on November 12, 2021.