PNB to sell stake in housing finance arm for Rs 1,851 crore
New Delhi: State-owned Punjab National Bank (PNB) Friday said it will partially sell its stake in PNB Housing Finance to global private equity firm General Atlantic Group and alternative investment firm Varde Partners for Rs 1,851.6 crore.
PNB has entered into agreements in relation to two independent transactions on March 29, 2019 for sale of 1,08,91,733 equity shares held in PNB Housing Finance (PNBHF) to General Atlantic Group at Rs 850 per share for Rs 925.80 crore and the same number of shares to VardePartners for Rs 925.80 crore, PNB said in a regulatory filing.
The bank has a target to fetch up to Rs 8,600 crore this fiscal, which is ending on March 31, 2019, by selling stake in non-core assets.
PNB said these transactions are subject to satisfaction of customary conditions and post these transactions, it would continue to hold strategic stake of 19.78 per cent of the paid up capital of housing finance subsidiary.
"PNB would continue to hold strategic stake of 19.78 per cent of the paid up capital of PNBHFL (as on December 31, 2018) and shall continue as a promoter and strategic shareholder of PNBHFL," PNB Housing Finance said in a separate regulatory filing.
General Atlantic Group is a growth equity fund with interest in consumer, financial services, healthcare and technology and VardePartners is a private equity investment firm.
PNB held 32.79 per cent stake in PNB Housing Finance as on December 31, 2018.
Additionally, the state-owned lender has sold its entire stake in Experian Credit Information Company.
"Punjab National Bank has sold its entire stake of 42,00,000 unlisted equity shares in Experian Credit Information Company of India Pvt Ltd on March 28, 2019," it said in another filing.
Sources said stake sale in Experian has fetched nearly Rs 32 crore to the lender.
PNB's stake sale in PNB Housing Finance was long overdue as the lender was scouting for right buyers at right market price.
"We may not sell anything if we don't think we are not getting a good offer," bank's MD and CEO Sunil Mehta had told reporters in February.
Its shares closed nearly flat at Rs 95.40 on the BSE; PNB Housing Finance was up 4.36 per cent at Rs 865.70.