PNB Housing crumbles
PNB Housing Finance is down in the red today, going down 5.5% to Rs.717.15. It has recovered a bit from this intra day low but stays firmly in the red.
The company announced yesterday evening after market hours that the promoter company, PNB has terminated the share purchase agreement (SPA) that it has entered with Varde Holdings.
On 29th March, PNB had entered into an agreement for sale of 1 ,08,91, 733 equity shares held in PNB Housing Finance to General Atlantic Group at a per share price of Rs.850/- aggregating to Rs. 925.80 crore.
The transaction contemplated under the SPA was required to be completed on or before 15 May, 2019 or such other date, as mutually extended by the Seller and Acquirer in writing ("Long Stop Date") failing which the SPA was to get terminated with immediate effect.
As part of conditions precedent to Completion, following regulatory approvals were required to be obtained, status of which is as set out below:
(i) CCI Approval: Communication from the Competition Commission of India ("CCI") approving the Transaction has been received by the Acquirer on 8 May 2019, although the final order from the CCI is yet to be received;
(ii) NHB Approval: Official communication from the National Housing Bank ("NHB") granting its approval to the Transaction has been received by the Company dated 7 May 2019; and
(iii) RBI Approval: The transacting parties to the SPA have not been accorded approval by the RBI for exemption from application of pricing guidelines under the Foreign Exchange Management.
PNB has further informed that it will continue to be the sole promoter of the Company and stay strategically invested in the Company. PNB strongly believes in the growth story of the Company and will continue to support the business and its management in pursuing their growth plans. Further, PNB will continue to provide branding support till PNB is the promoter of the Company.