The Competition Commission of India (CCI) has approved the Carlyle Group-led ₹4,000 crore equity investment transaction in PNB Housing Finance Ltd. ( PNBHFL) even as the Securities and Appellate Tribunal (SAT) is yet to pronounce its verdict on the valuation controversy that the deal ran into recently.
Giving its “deemed approval” to the green channel notice on the combination -which involves Carlyle Group controlled Pluto Investments S.a.r.l and Salisbury Investments (Aditya Puri’s family investment vehicle) acquiring upto 56.29% stake (assuming full tendering and acceptance in the open offer), the competition watchdog CCI noted that the proposed combination raises no risk of any appreciable adverse effect on competition under the competition law.
Under the deal announced on May 31, Carlyle Group alongside other investors were to infuse ₹4,000 crore capital into PNBHFL through preferential allotment of equity shares and warrants at ₹390 per share. However, this deal ran into rough weather after SEBI intervened and asked PNBHFL not to go ahead with the deal until the Housing Finance company undertakes valuation of its shares by an independent agency.
PNBHFL later preferred an appeal before the SAT, which has reserved its order.
As part of the deal, Pluto Investments had agreed to invest upto ₹3,185 crore. The proposed Carlyle-led transaction will trigger a mandatory open offer by Pluto Investments S.a.r.l. for the purchase of up to 26 per cent equity shares of PNBHFL from public shareholders.
Recently, shares of PNBHFL closed 5 per cent higher at ₹717.85 at National Stock Exchange.
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