BackCarlyle, Advent get conditional nod from RBI to buy Yes Bank stake
‘The investors are evaluating the conditions,’ Yes Bank said, adding they will engage with the central bank to seek an early resolution of the conditions and get a final approval on the acquisition
PremiumPrivate sector lender Yes Bank on Thursday said that US private equity firms Carlyle Group Inc and Advent International have received conditional approvals from the Reserve Bank of India (RBI) to buy stakes in Yes Bank.
“The Reserve Bank of India has issued a conditional approval to each Investor with respect to the proposed acquisition by each of them of up to 9.99% of paid up share capital of the Bank through subscription to equity shares and share warrants of the Bank and the Investors are evaluating the conditions," Yes Bank said in a filing.
"The investors are evaluating the conditions," the Mumbai-based bank said, adding they will engage with the central bank to seek an early resolution of the conditions and get a final approval on the acquisition.
The board of Yes Bank had earlier approved a ₹8,898 crore ($1.1 billion) investment by Advent and Carlyle, ending months of negotiations and marking another step on the way to the lender’s full recovery.
The funds were to be raised by issuing shares worth $640 million and share warrants worth $475 million.
"YES Bank will raise the funds through a combination of about $640 million in shares and about $475 million in share warrants. It will offer 3.69 billion shares to affiliates of Carlyle Group and Advent. The company will also issue 2.56 billion share warrants at a price of ₹14.82 per warrant to both the investors," the private lender had said earlier in a statement.
The proposed sale to the private equity firms came years after the central bank stepped in to take control of Yes Bank after a dramatic rise in toxic assets alarmed investors and depositors, posing a systemic risk to the country's banking sector.
In September 2022, Yes Bank approved the transfer of stressed assets worth ₹48,000 crore to private equity firm JC Flowers in an attempt to clean up its balance sheet.
On Thursday, the Yes Bank scrip settled 0.58% lower at ₹17.05 apiece on the BSE.
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