On Friday, state-run Punjab National Bank (PNB) said in a regulatory filing that it will be selling a part of its stake in PNB Housing Finance to General Atlantic and Varde Partners for Rs 1,851.60 crore. The lender said that it has already entered into agreements with regard to the same.
The agreement states that PNB will sell 1,08,91,733 equity shares held in PNB Housing Finance Ltd (PNBHF) to global private equity firm General Atlantic Group at a price of Rs 850 per share, aggregating to Rs 925.80 crore. Further, 1,08,91,733 equity shares held in PNBHF will be sold to alternative investment firm Varde Partners at a price of Rs 850 per share, aggregating to Rs 925.80 crore.
PNB said that post these transactions, it would continue to hold a strategic stake of 19.78 percent of the paid-up capital in the housing finance unit and shall continue to act as a promoter and strategic shareholder of PNBHF. As on December 31, 2018, PNB held 32.79 percent stake in PNBHF.
The transactions are subject to "satisfaction of customary conditions, including receipt of applicable regulatory approvals", PNB added.
PNB also said that an extraordinary general meeting of shareholders was held on 28 March for obtaining shareholders' approval to issue and allot 80,20,63,535 equity shares at a premium of Rs 71.66 per share amounting up to Rs 5,908 crore on preferential basis to the government.