A consortium of five shareholders of domestic ratings agency Credit Analysis and Research Ltd (CARE), including the single largest stakeholder IDBI Bank, has rejected all bids submitted by prospective investors to buy a stake in the company, as per a stock market disclosure.
IDBI informed CARE that a meeting held last weekend to open and consider the submitted bids, did not throw up any offer worth taking as no bid was found acceptable to the selling shareholders and all of them have been rejected.
As reported earlier, the selling shareholders, who together own over 45 per cent in CARE, were looking to sell around 38.3 per cent stake in the company. This was worth around Rs 890 crore ($142 million) when the plan was made public, given the market price then.
IDBI owns 16.69 per cent stake followed by Canara Bank with 14.97 per cent, IL&FS with 9.3 per cent, SBI with 6.31 per cent stake and Bajaj Holdings with 5.89 per cent are the top five shareholders of CARE, as of December 31, 2013. While Canara Bank and SBI are expected to be part of the selling shareholders, the names of the others could not be independently verified.
Baring Asia PE was said to be among other PE investors in the fray for the stake.
The proposed deal would have also triggered a mandatory open offer if the entire stake up for sale is lapped up by one investor.
CARE scrip crashed over 8 per cent on the BSE to close at Rs 788.45 a share in a strong Mumbai market on Monday.
CARE, which went public in 2012, also counts among its shareholders names like Aditya Birla PE and Ascent Capital.
(Edited by Joby Puthuparampil Johnson)
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