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Home / Industry / Banking /  Canara Bank seeking EOIs from prospective buyers

MUMBAI : Canara Bank on Friday said that the bank is seeking expressions of interest from prospective buyers to purchase 30% stake in Can Fin Homes Ltd. In a notice to the exchanges, the bank said that it intends to divest 3.9 lakh equity shares of the face value of Rs. 21 each.

The bank has also engaged a reputed advisory firm to carry out the legal due diligence on Can Fin Homes and submit a report that shall be shared with the prospective buyer for submitting the final binding bid document, the notice said.

In June this year, the south based bank had received board approval to sell part or full stake in the housing finance company.

Last year, Canara Bank had called off move to divest its entire shareholding in housing finance subsidiary Canfin Homes after receiving lower than expected price quotation.

PE firms like Baring Private Equity Asia, Warburg Pincus, KKR, True North, Bain Capital, Temasek and Blackstone had shown interest in the stake. Strategic investors such as Kotak Mahindra Bank, RBL Bank and HDFC Ltd were also in the race to pick up the stake. Asia-focussed buyout fund Baring and HDFC were the two contenders that had submitted binding offers.

Can Fin Homes has a pan India network of 132 branches, 20 Affordable Housing Loan Centres (AHLCs) and 20 satellite offices with customer base of over 1.2 lakh.

Canara Bank holds a 29.99% stake in the publicly listed home finance company. The Singapore sovereign wealth fund GIC Pte. Ltd owns a 13.45% stake, which it had bought in March 2017 from Canara Bank for 753.77 crore.

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