PNB is planning to sell its 22 percent stake in PNB Housing Finance to General Atlantic Partners (GA) and Varde Partners for around Rs 3,500 crore, according to a report by The Economic Times.
PNB owns 32.79 percent stake in its housing finance arm. The bank has decided to hold a 10.7 percent stake and sell the remaining shares to two buyers instead of selling the entire block to one suitor. Such a move would ensure that no open offer for an additional 26 percent of the company gets triggered following the share sale.
In December last year, the bank revived its plans to cash out of the venture after the stock hit a 52-week low of Rs 850 on the BSE last October. Its initial plan was to sell 66 percent along with private equity investor Carlyle. However, the plan was dropped in the wake of liquidity pressure following a default by Infrastructure Leasing & Financial Services (IL&FS) in September-October 2018.