There has been a lot of development on the questions raised on the Carlyle transaction with Punjab National Bank (PNB) for PNB Housing Finance and getting a controlling stake in that.
In the latest development, PNB Housing Finance has notified the exchanges that the parent company PNB has advised them to restructure their transaction as per the directive by the market regulator Securities and Exchange Board of India (SEBI).
PNB Housing Finance on Wednesday said its promoter Punjab National Bank has asked it to consider restructuring the proposed Rs 4,000 crore capital infusion deal led by the US-based Carlyle group.
The proxy advisory firm SES had first raised questions on corporate governance as well as the valuation of this particular transaction.
In June, Punjab National Bank Housing Finance said that it has a received letter from SEBI asking it to halt its proposed Rs 4,000 crore deal with Carlyle group.
In a letter to the Bombay Stock Exchange (BSE), the PNBHF had said that SEBI has called the preferential share allotment “ultra-vires” (against the law) of the articles of association (AOA). The decision regarding allotment by issuing equity shares and convertible warrants was taken on May 31 this year at an Extraordinary General Meeting (EGM) of shareholders.
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(Edited by : Anshul)
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