Competition Commission of India (CCI) has approved the acquisition of equity shares in PNB Housing Finance Limited (PNBHFL) by the Pluto Investments an entity of Carlyle Group and Salisbury Investments Private Limited, under the Green channel facility.
The transaction approved under Green Channel is deemed to be approved under regulation 5A of the CCI.
- The CCI’s approval of the proposed investment of Rs 4000 crore, makes Carlyle group the majority shareholder of PNBHFL.
- Pluto Investments, an entity set up in Luxembourg, is owned by Carlyle Asia Partners V and Salisbury Investments Pvt. Ltd, the family investment vehicle of Aditya Puri, will acquire a stake in the PNBHFL.
Key Points:
In May 2021, the board of PNBHFL approved the placement of 82 million preferential equity shares and 20.5 million share warrants with Pluto Investments and Salisbury Investments.
General Atlantic Singapore Fund FII Pte Ltd and Alpha Investments V Pte Ltd are the other proposed investors of the deal.
Green Channel:
i.Green channel, an automatic approval system, is an amendment in The Competition Act, 2002, effective from 15th August 2019, to improve merger regulations.
ii.In Green channel, a combination is deemed to have been approved by the regulator upon the filing of the notice for the combination by the parties concerned.
Carlyle Group to Exit SBI Life by Selling 1.9% stake
CA Emerald Investments, an affiliate of Carlyle Asia Partners, is exiting the SBI Life Insurance Company (SBI Life) by selling the remaining 1.9% Stake worth Rs 2,160 crore through the stock exchange platform.
The sale price has been fixed at Rs 1130 to Rs 1136.85 apiece.
Background:
i.In March 2019, CA Emerald Investments acquired a 9% stake in SBI Life from BNP Paribas Cardif SA for around 652 million USD.
ii.In November 2019, CA Emerald Investments divested its 3% stake in SBI Life for about Rs2,800 crore and in May 2021 diverted its 4% stake for over Rs 3,900 crore through an open market transaction.
About Competition Commission of India (CCI):
CCI Established on October 2003 under the Competition Act, 2002.
Chairperson- Ashok Kumar Gupta
Headquarters– New Delhi
About Carlyle Group:
Chief Executive Officer– Kewsong Lee
Headquarters– Washington, D.C., United States
