PNB Housing Ends Rs4,000cr Financing Agreement with Carlyle-led Group

Punjab National Bank Housing Finance Co., Ltd., a subsidiary of the state-owned Punjab National Bank, announced today that it has closed a 4,000 rupee transaction with a U.S.-based Carlyle Group-led investor group on the stock exchange. ..

“At today’s meeting, the board of directors decided not to proceed with preferential issuance, and the share underwriting agreements entered into with the proposed allottees were terminated according to their respective terms,” ​​PNB said on a stock exchange filing. Said in.

As a result, PNB Housing Finance said it has notified the board of directors that Carlyle’s entity, Pluto Investments, will begin the process of withdrawing their public offer (Rs 403.22 per share).

PNB Housing Finance said the proposed proceedings have been put on hold for more than four months (after it has already taken more than two years) due to proceedings pending in the Securities Appeals Court (SAT).

“There is no visibility or certainty regarding the timeline of judicial decisions on legal issues, especially since a third member of the SAT has not yet been appointed,” he said.

The Board noted that shareholder approval to undertake the priority issue was unclear due to the protracted proceedings and the ongoing provisional order of the SAT dated June 21, 2021.

“In addition, regulatory approvals required for priority issues are pending, and it is unclear whether such approvals will be made while legal proceedings are underway,” said PNB Housing. Therefore, he said the funding plan was postponed and such uncertainty would continue.

In June of this year, the Indian Securities and Exchange Commission (SEBI) instructed Punjab National Bank Housing Finance (PNBHF) to suspend trading with the Carlyle Group for Rs 4,000.

As a rare regulatory measure, capital market regulators have restricted mortgage lenders from voting for transactions by shareholders and have instructed them to carry out the valuation process in accordance with relevant applicable legal provisions.

The deal, which took place under the lenses of SBI and RBI, was ultimately followed by concerns expressed in certain quarters, including an agency, by the US-based private equity giant Carlyle Group’s PNB housing. It will dominate finance.

Stakeholders Empowerment Services (SES), a proxy advisory firm, was proposed in its report, wondering if the Punjab National Bank (PNB) was willing to relinquish control without eliciting fair compensation. I have raised many questions about the transaction.

Read also: SEBI suspends Rs 4,000cr Carlyle-PNB housing transactions

PNB Housing Ends Rs4,000cr Financing Agreement with Carlyle-led Group

Source link PNB Housing Ends Rs4,000cr Financing Agreement with Carlyle-led Group

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