PNB Housing Finance deal: Carlyle Group floats ‘draft letter offer’

Meanwhile, both Reserve Bank of India (RBI) as well as Sebi will look into various regulatory issues related to the proposed investment in PNB Housing by Carlyle and others. 
PNB Housing Finance Ltd (File Photo | Reuters)
PNB Housing Finance Ltd (File Photo | Reuters)

NEW DELHI: The Carlyle Group along with other entities on Monday floated a “draft letter offer” with regard to an open offer for acquisition of over 7 crore equity shares representing 26 per cent stake in PNB Housing Finance.

This forms part of the proposed deal to invest Rs 4,000 crore in the firm through a preference issue. 

As per the Securities and Exchange Board of India (Sebi) regulations, an open offer is a mandatory offer an acquirer and persons acting in concert (PACs) have to make to the shareholders of a company in case the acquisition is in excess of 25 per cent stake.

The offer price has been fixed at Rs 403.22 per share.  

Meanwhile, both Reserve Bank of India (RBI) as well as Sebi will look into various regulatory issues related to the proposed investment in PNB Housing by Carlyle and others. 

BSE has sought clarification from PNB Housing over the deal and have sought pricing certificate from a registered valuer as well as valuation certificate to be comprehensive and to take into account various methodologies alongwith justification, to arrive at the valuation, from the lender.

An extraordinary general meeting (EGM) of the shareholders of the housing financier is slated for June 22 to seek their approval for allotment of shares and warrants to the proposed investors, among others.

Last week, proxy advisory firm SES raised concerns about the proposed preferential issue and said that it will change the control of PNB Housing Finance — from PNB being the sole promoter of the company to a joint control holder with Carlyle Group.

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