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PNB asks housing subsidiary to reconsider its deal with Carlyle

Punjab National Bank has asked its subsidiary PNB Housing Finance to reconsider its Rs 40 billion stake sale to Carlyle Group and others. The bank has sent a letter to this effect to PNB Housing Finance to take up an alternative capital-raising plan in compliance with regulatory rules. In June PNB Housing Finance had challenged regulatory action to delay global private equity major Carlyle’s investment plan for the lender before the Securities Appellate Tribunal. The regulator had asked the housing financier to keep on hold the proposal to seek the shareholders’ nod for a preferential allotment of equity until an independent valuation of shares was done.  As part of the deal, Carlyle affiliate Pluto Investments was to invest Rs 31.85 billion at a price of Rs 390 per share. Existing shareholders Ares SSG and General Atlantic were to participate in the fundraise. Salisbury Investments, the family investment vehicle of Aditya Puri, who is the senior advisor for Carlyle in Asia and HDFC Bank’s former chief executive and managing director, was also to take part in the fundraise.

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