KOLKATA: US-based private equity firm Carlyle has put in its bid to acquire Punjab National Bank's stake in PNB Housing Finance, a person familiar with the matter told ET.Carlyle, which already holds 32.4% in the housing finance company, will get a controlling stake if it succeeds to acquire PNBs 32.8% stake.
Other investors have also evinced interest.The PE firm was earlier planning to sell down its holding along with PNB but a fall in prices of PNB Housing prompted a change in decision, the person cited above said.PNBs 32.8% stake was valued at around Rs 4,900 crore after Fridays close of trade, which is about 37% discount on its one-year highest price seen in the last week of August 2018 before the credit squeeze rattled the market following default in ILFS Group companies.The joint sale process started sometime in July last year before it got derailed.But the bank has again begun the process and floated a fresh expression of interest as the government is pushing state-owned banks to get out of non-core business.We have our own housing finance portfolio and therefore we are, in a way, competing with PNB Housing Finance.
So, it is better that we move out.
Our investment has also completed its life span, PNB chief executive officer Sunil Mehta told ET.He, however, refused to comment on Carlyles renewed interest on PNB Housing.He said a clearer picture on the stake sale would emerge by the end of this monthCarlyle declined comment on the matter.Meanwhile, the housing finance company reported a 32% rise in consolidated net profit at Rs 303 crore in the December quarter, as against Rs230 crore in the year-ago period.Mehta said PNB was not looking to sell the banks other local subsidiaries such as PNB Gilt, PNB Investment Services Co and PNB Insurance Broking, and overseas subsidiaries like Punjab National Bank (International) Ltd and Druk PNB in Bhutan.