| Log in
axis_bank_by_junaid.jpg Photo Credit: Shah Junaid/VCCircle

Axis Bank buys 13.67% stake in asset reconstruction firm ACRE for $3.4 mn

By PTI
16 September, 2016

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.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
Singapore's distressed assets fund SSG Capital buys 49% of Asset Care

Singapore’s distressed assets fund SSG Capital buys 49% of Asset Care

PTI 3 years ago
Asset Care and Reconstruction Enterprise has sold 49 per cent stake to Singapore...
IFCI to part-exit Stock Holding Corp of India

IFCI to part-exit Stock Holding Corp of India

Anuradha Verma 2 years ago
Financial institution IFCI Ltd has received approval from the board of directors...
Multiples, Carlyle invest $41M in South Indian Bank QIP

Multiples, Carlyle invest $41M in South Indian Bank QIP

Madhav A Chanchani 5 years ago
Multiples Alternate Asset Management has picked up over 5 per cent stake in...
No Comments

Axis Bank buys 13.67% stake in asset reconstruction firm ACRE for $3.4 mn

Powered by WordPress.com VIP