PNB Residential Shelf Carlyle-led Group Selling 4,000cr Shares

Amid legal hurdles, PNB Housing Finance said Thursday that it had canceled plans to sell its 4,000 rupees stake to US-based private equity firm Carlyle Group and others.

The deal was involved in legal issues regarding valuation issues. Capital market regulator Sebi approached the Supreme Court last month in opposition to the Securities Appeal Court’s order on issues related to the company’s 4,000 rupee equity capital raising plan. This issue is pending in the Supreme Court.

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“At today’s meeting, the board 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 Housing Finance told regulatory agencies. Said in the submission.

The main purpose of the board is to raise funds to support the growth of the company, and the board believes that the current situation is not in the best interests of the company and its stakeholders.

Under the proposed transaction, Carlyle’s subsidiaries Pluto Investments SARL and Salisbury Investments Pvt Ltd will acquire a stake in PNB Housing Finance, in which the state-owned Punjab National Bank holds a little over 32% stake.

Salisbury is a non-bank financial company that primarily invests in financial securities. This is a family investment vehicle for Aditya Puri, Senior Advisor to Carlyle in Asia and former CEO and MD of HDFC Bank.

“As a result, Pluto Investments SARL (with those who act together) will begin the process of withdrawing their tender offer (Rs 403.22 per share) in accordance with SEBI (substantial acquisition). Informed. Regulations (of shares and acquisitions), 2011 “.

With the above in mind, the company said it would evaluate other alternatives to raise capital.

In May, PNB HFL announced that it would preferentially allocate Rs 3,200 shares and Rs 800 worth of warrants for Rs 390, respectively, to Carlyle Group and Aditz App’s family investment vehicles Salisbury Investments, General Atlantic and Alpha Investments, respectively. bottom.

After a week, it was considered unfair to the company’s public shareholders by the stakeholder empowerment service of the acting advisory company. On June 18, Sebi instructed the company to suspend the allocation unless the assessment was made by an independent expert witness.

Mortgage lenders then moved the SAT and challenged regulatory instructions. The Court of Appeals allowed the company to hold an extraordinary general meeting scheduled, but was warned that the results of the vote would not be disclosed.

The SAT has issued a split verdict on the lender’s appeal against Sebi’s directive to limit PNB HFL’s preferential allocation of shares to a large number of investors unless the valuation is done by an independent expert. ..

The company has been considering financing for the past few years. The Reserve Bank of India banned PNB from injecting capital into its subsidiaries earlier this year. Mortgage lenders had previously planned a qualified institutional placement, so the PNB has joined through a rights issue. However, this turned out to be difficult, as PNB still held more than 30% of the mortgage lenders, leading to a breach of regulatory standards.

In its annual report, creditors pose a new set of challenges to the entire housing finance industry with the Covid-19 pandemic and subsequent blockade.

Meanwhile, the mortgage company plans to raise a debt of Rs 35,000.

PNB Residential Shelf Carlyle-led Group Selling 4,000cr Shares

Source link PNB Residential Shelf Carlyle-led Group Selling 4,000cr Shares

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