PNB Housing: Baring Asia likely to buy Carlyle’s stake

PNB Housing: Baring Asia likely to buy Carlyle’s stake

Shares of PNB Housing Finance on November 29 jumped 5% higher to Rs 524.75 after the media report suggested that Baring Asia has offered to buy Carlyle’s stake in PNB Housing Finance.
This would give Carlyle an exit from the investment after its attempt to buy a controlling stake in the company got foiled due to corporate governance issues and valuation.
The talks are on between Carlyle and Baring Asia. If General Atlantic & SSG also sell their shares, Baring Asia could own a controlling stake in PNB Housing Finance. The deal may involve an open offer for the shareholders if talks materialise.

Carlyle owns a 32.2% stake in PNB Housing Finance. General Atlantic & SSG own close to 10% stake each in the company.
Earlier this month, PNB Housing Finance reported a 25% decline in net profit at Rs 235 crore in the three months ended September. The housing finance company had posted a net profit of Rs 313 crore in the corresponding period a year ago.
PNB Housing Finance, promoted by state-owned Punjab National Bank (PNB), also scrapped the Rs 4,000 crore preferential issue. The company had wanted to raise equity capital to support the growth.
Among the other key financials during Q2FY22, the company’s net interest margin stood at 3% compared to 3.5% in the year-ago period.

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