Suitors are lining up for PNB Housing Finance as the deal process kick-starts in full force.
Many strategic players are likely to fight it out with private equity backing to buy the housing finance arm of Punjab National Bank.
Sources tell CNBC-TV18 that ahead of the deadline of August 25 for the submission of the expression of interest, a lot of alliances are taking shape.
Sources with direct knowledge suggested that Aditya Birla Capital is likely to tie-up with APAX Partners to participate in the PNB Housing Finance deal.
Amongst the other strategic players interested in the housing finance company are Indiabulls Housing Finance and Hero Group’s unlisted arm, Hero FinCorp.
Private equity firm Temasek is likely to back Fullerton for making a pitch for buying PNB’s housing finance company.
One of the most prominent contenders is Blackstone, which is likely to lead a consortium with GIC and Advent as partners, to participate in the sale process.
One of the largest strategic players, Kotak Mahindra Bank, is also exploring the opportunity. One can’t rule out interest from marquee private equity firms like KKR and even Bain Capital.
PNB Housing Finance, AB Cap, APAX, Temasek, Hero Fin, Indiabulls Housing Finance did not offer any comment on CNBC-TV18’s query on PNB Housing Finance deal.
Experts suggested that many more consortiums and tie-ups can be expected ahead of the August 25 deadline, since it’s a large transaction.
With 66 percent stake on the block by PNB and Carlyle, the mortgage lender is worth Rs 14,500 crore as per market capitalisation of PNB Housing Finance.
Carlyle has hired Morgan Stanley and Punjab National Bank has hired Credit Suisse as the deal advisors.
First Published: Aug 7, 2018 4:32 PM IST
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