Yes Bank board chooses JC Flowers as partner for asset reconstruction company
Yes Bank will hold a Swiss Challenge auction to invite counter bids with JC Flowers' offer as anchor bid.
Yes Bank's Board Credit Committee has signed a binding term sheet with JC Flowers for partnership with respect to the sale of the lender's stressed loan portfolio of Rs 48,000 crore.
The binding term sheet becomes effective as of July 15, subject to requisite pre-conditions. JC Flowers, which is the base bidder, had valued Yes Bank's Rs 48,000 crore non-performing assets at approximately Rs 11,180 crore, sources told CNBC-TV18.
CNBC-TV18 was the first to report that US-based private equity firm JC Flowers had emerged as the highest bidder for the private lender's proposed ARC. Foreign private equity firms like Cerberus Capital and Apollo Global were also in the fray to partner with Yes Bank for its ARC foray.
Also read: Yes Bank shortlists JC Flowers as its ARC partner; deal to help clean-up bank's balance sheet
JCF's bid would form the base for the Swiss Challenge auction, the sources said. The decision came after an enabler approval of the lender's board of directors on May 6 and final approval from the Board Credit Committee on July 13.
"In accordance with the guidelines issued by the Reserve Bank of India, the bank proposes to run a transparent bidding process on a Swiss Challenge basis for the sale of such portfolio using the JC Flowers ARC’s bid as the base bid," a statement from the lender said.
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