Private sector Axis Bank will buy 13.67 per cent stake in Assets Care and Reconstruction Enterprise (ACRE) from IFCI Ltd for Rs 22.72 crore.
A share purchase agreement has been completed between the two companies for the stake transfer.
“The Bank has signed a share purchase agreement with IFCI for acquisition of 73,28,334 equity shares (13.67 per cent of total outstanding shares) of face value of Rs 10 per share in Assets Care and Reconstruction Enterprise Limited from IFCI at Rs 31 per share, resulting in a total cash consideration of Rs 22.72 crore,” Axis Bank said in a release.
The transaction is subject to regulatory approvals including that from Reserve Bank.
SSG Capital Management (Singapore Pte Ltd), IFCI Ltd, Punjab National Bank, Tourism Finance Corporation, Bank of Baroda, LIC, United Bank of India and Madhya Pradesh Consultancy (MPCON) are the shareholders in ACRE.
SSG Capital Management has the biggest shareholding of 49 per cent in ACRE, IFCI holds 19.34 per cent, PNB 15.30 per cent, Tourism Finance 5.44 per cent, Bank of Baroda 5.34 per cent while the rest is held by LIC, UBI and MPCON.
IFCI wants to exit its entire stake-holding in ACRE and has been in talks with buyers for some time now to sell its stake in the entity.
ACRE, an asset reconstruction company, is engaged in the acquisition of assets (NPAs) from Banks/FIs and their resolution.
Axis Bank stock closed 2.11 per cent higher at Rs 601.15 on BSE.
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