Mumbai: Private sector lender RBL Bank has received the Reserve Bank of India’s approval for its proposed deal with Emirates NBD Bank, according to sources familiar with the matter. Approval from markregulator Sebi is also expected shortly. The clearance is likely to trigger a mandatory open offer as early as next week.
RBL Bank did not respond to ET’s email queries until press time.
Last week, the lender announced that Emirates NBD Bank had secured approval from the Central Bank of the United Arab Emirates for its proposed acquisition of a majority stake in the Indian bank.
The approval also covers the amalgamation of Emirates NBD’s existing operations in India with RBL Bank, subject to requisite regulatory clearances.
In October, Emirates NBD agreed to acquire a 60% stake in RBL Bank for approximately Rs 26,853 crore, marking the largest takeover of an Indian lender by a foreign financial institution. The transaction will make RBL Bank the largest subsidiary of Emirates NBD outside Dubai.
RBL Bank will also undergo a scheme of amalgamation with Emirates NBD’s India branch, paving the way for the consolidation of the latter’s presence in India.
As part of the transaction, Emirates NBD Bank will launch an open offer to acquire up to 26% of RBL Bank’s expanded voting share capital at a price of Rs 280 per equity share. The mandatory offer, linked to the planned stake acquisition, will cover approximately 415.58 million shares.
Separately, the Reserve Bank of India last week approved Avenir Investment RSC, a subsidiary of Abu Dhabi-based International Holding Company (IHC), to acquire a controlling stake in Sammaan Capital (formerly Indiabulls Housing Finance).
The transaction involves a Rs 8,850 crore capital infusion for a 41.23% stake, which could increase to 63.36%.
