Oaktree could exit race for Reliance Capital 

Oaktree has asked for Reliance Capital’s financial results till 31st December 2022 and a four week extension for conducting the auction process.

Published: 08th December 2022 07:31 AM  |   Last Updated: 08th December 2022 07:31 AM   |  A+A-

Reliance Capital

For representational purpose

Express News Service

NEW DELHI: The e-auction for acquiring Reliance Capital will be a three horse race, as the fourth contender Oaktree is likely to exit from the race.

Oaktree, which has submitted a resolution plan of Rs 4,200 crore for acquiring the erstwhile Anil Ambani group company, could withdraw from the auction as two of its demands are unlikely to be fulfilled by the lenders, sources in the know of development told this newspaper.

Oaktree has asked for Reliance Capital’s financial results till 31st December 2022 and a four week extension for conducting the auction process. Both the demands have been termed as ‘impractical’ by the lenders of Reliance Capital. The lenders in a meeting held on Tuesday rejected these demands of Oaktree. They now feel that Oaktree will not participate in the auction process to be held in the week starting 19 December.

The lenders argued that with the National Company Law Tribunal (NCLT) directing the committee of Creditors (CoC) to complete the resolution process of Reliance Capital by 31 January, there is no scope of an extension of the auction by a month. With Oaktree out of the race, Cosmea-Piramal consortium, Hinduja, and Torrent Group will participate in the e-auction.

Reliance Capital had received four binding bids on November 28, which was the last date for submitting the bids. The highest bid of Rs 5,231 crore has been submitted by a consortium of Cosmea Financial and Piramal. Hindujas with Rs 5,060 crore has emerged as the second highest bidder, followed by Torrent Investment (Rs 4,500 crore) and Oaktree (Rs 4,200 crore).

Within e-auction, lenders have two options, either to go for an ascending or descending auction. Sources told TNIE that foreign banks are pushing for the descending auction wherein the base price will be `17,000 crores. In case of the ascending auction process, the base price will be Rs 5300 crore - the highest bid value quoted by Cosmea and Piramal consortium.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp