PNB Housing Finance Ltd has canceled its Rs 4,000 crore deal with a group of investors led by Carlyle. The deal was embroiled in legal disputes since the announcement, due to which the company has decided to cancel the deal. The deal was not getting approval from the regulator due to pending legal issues.
Along with this, Carlyle Group company Pluto Investments has also started the process of withdrawing its open offer. PNB Housing Finance gave this information in a notice sent to the stock exchanges on Thursday.
Multibagger Stock: This music company has given 420% return this year, did you buy?
PNB Housing Finance had entered into a deal with a group of investors led by private equity firm Carlyle Group to raise Rs 4,000 crore. In return, preferential shares and warrants were to be allotted to these investors. However, following objections from some minority stakeholders, SEBI prohibited the issuance of preferential shares and warrants of PNB Housing.
Stakeholders said that through this deal the control of PNB Housing will go to Carlyle Group, which is not in the interest of the stakeholders. This order of SEBI was challenged by PNB in the Securities Appellate Tribunal (SAT), but SAT gave a divided verdict in the matter. Its SEBI appealed to the Supreme Court for the SAT’s decision.
After Google, Facebook, LinkedIn will now be closed in China, Microsoft announced
PNB Housing Finance said in a note that the legal process is getting lengthy and there is no fixed time frame as to when the final decision will come in the matter. Apart from this, the approval for allotment of preferential shares is also pending and the picture is not clear about it, PNB said. In such a situation, a decision is taken to cancel this deal.
For social media updates please contact us on Facebook (https://www.facebook.com/moneycontrolhindi/) and Twitter (https://twitter.com/MoneycontrolH) to follow.