Mumbai, May 16 (IANS) Lending major Punjab National Bank (PNB) will remain as the sole promoter of PNB Housing Finance (PNBHF), after stake sale agreements with Varde Holdings and General Atlantic Group were terminated.
Earlier PNB had entered into an agreement for sale of around 1.08 crore equity shares held in PNBHF to Varde Holdings at a per share price of Rs 850 aggregating to Rs 925.80 crore (SPA).
“PNB and Varde have mutually agreed to terminate the SPA, and all rights and obligations of the parties there under with immediate effect,” the lender said in a regulator filing on Thursday.
“Post termination of the SPA, PNB will continue to be the sole promoter of the company and stay strategically invested in the company.”
In a separate BSE filing, PNB said it had entered into an agreement for sale of around 1.08 crore equity shares held in PNBHF to General Atlantic Group at a per share price of Rs 850 aggregating to Rs 925.80 crore (SPA).
“Since all conditions precedent to completion of the transaction are yet to be fulfilled and accordingly the completion has not occurred as on date (i.e., 15 May 2019 being the ‘Long Stop Date’ under the SPA), the SPA stands terminated with immediate effect,” the lender said.
According to PNB, the transacting parties to the SPA have not been accorded approval by the Reserve Bank of India (RBI) for exemption from application of pricing guidelines under the ‘Foreign Exchange Management (Transfer or Issue of Security to a Person Resident Outside India) Regulations, 2017’ (FEMA 20-R).
In addition, PNB said that it “strongly believes in the growth story of the company, and will continue to support its business and management in pursuing their growth plans”.