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PNB terminates agreements to sell stake in housing finance arm

Press Trust of India  |  Mumbai 

State-run Thursday said it has terminated the agreements with and Partners to sell its stake in Housing (PNBHF).

The bank, in a filing to the exchange, said it will continue to be the sole promoter of Housing post the termination of the pacts, and stay strategically invested in its housing arm.

Of the two agreements, the one with Partners was terminated mutually, while the contract with was terminated in the absence of regulatory approvals.

In March this year, the had entered into two independent agreements for selling 1.08 crore of its equity shares held in PNBHF each to and Partners at Rs 850 apiece.

The transaction with General Atlantic Group was required to be completed on or before May 15, 2019, the said.

The transactions needed approval from the (CCI), (NHB) and the

The lender said communication from CCI approving the transaction has been received by General Atlantic Group on May 8, 2019, although the final order is yet to be received.

The NHB has also given its approval for the transaction on May 7, 2019.

"The transacting parties to the share purchase agreement (SPA) have not been accorded approval by the RBI for exemption from application of pricing guidelines under the foreign exchange management," the bank said.

Since all conditions precedent to completion of the transaction are yet to be fulfilled and completion has not occurred as on May 15, 2019, the SPA with General Atlantic Group stands terminated with immediate effect, the lender said.

The bank said it strongly believes in the growth story of housing finance and will continue to support the business and its management in pursuing their growth plans.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 16 2019. 22:26 IST