Yes Bank acquires a stake worth 9.9% in JC Flowers ARC; to buy 10% more

Retail Banking firm, Yes Bank has reportedly announced that it has secured a 9.9% share in JC Flowers ARC.

As per reports, the lender plans to obtain another 10% stake in the asset reconstruction company, subject to the requisite regulatory approvals.

Yes Bank also looks forward to becoming a minority shareholder in the ARC in collaboration with JC Flowers.

The 9.9% stake includes around 12.3 million equity shares at a price of USD 0.14 (INR 11.43) per share in JC Flowers ARC.

According to reports, Yes Bank and JC Flowers ARC are currently in the process of submitting the application for obligatory approvals from RBI.

In the morning, around 9:00 AM, the shares of Yes Bank were trading at around USD 0.21 (INR 17.30) per piece, up by 0.58% on the Bombay Stock Exchange (BSE). Its market cap is approximately USD 5.3 billion (INR 43,347.04 crore).

At the start of the week, Yes Bank entered into a purchase and share subscription agreement with JCF ARC LLC and J.C. Flowers Asset Reconstruction.

Apart from this, it also inked shareholder’s agreement with JC Flowers ARC, CF ARC LLC, and Emso Asset Management to acquire 19.9% of the equity capital in JC Flowers ARC.

Initially, out of the total 19.9%, Yes Bank acquired 9.9% shareholding in JC Flowers ARC., with plans of acquiring the remaining 10% in due course, subject to regulatory approvals.

According to the guidelines, a banking company must take prior approval from RBI to acquire 10% or more shareholding in an ARC (asset reconstruction company) and an ARC for including any entity as a sponsor of the ARC.

Thus, each of the banks, along with JC Flowers ARC, would require necessary approvals for acquiring 10% or more of the paid-up share capital of the ARC.

Source credit – https://www.livemint.com/market/stock-market-news/yes-bank-buys-9-9-stake-in-jc-flowers-arc-to-acquire-additional-stake-11669693256669.html