Source - RNS
RNS Number : 1085K
Axis Bank Limited
16 September 2016
 

 

Dear Sir(s),

 

SUB: EXECUTION OF SHARE PURCHASE AGREEMENT

REF: REGULATION 30 READ WITH PARA A OF SCHEDULE III OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 ("LISTING REGULATIONS")

 

This is to inform you that the Bank has signed a Share Purchase Agreement with IFCI Limited ("IFCI") for acquisition of 73,28,334 equity shares (13.67% of total outstanding shares) of face value of Rs 10 per share in Assets Care and Reconstruction Enterprise Limited ("ACRE" or the "Entity") from IFCI at INR 31 per share, resulting in a total cash consideration of INR 22.72 crores ("Transaction"). The above Transaction is subject to requisite regulatory approvals, including from Reserve Bank of India.

 

The details as required under the Listing Regulations are given as under:

 

Sr. No.

Particulars

Details

1.

Name and Details of Target Entity

 

Assets Care and Reconstruction Enterprise Limited

 

Total Assets:      INR 336 crores (FY 2016)

Total Income:   INR 35.9 crores (FY 2016)

 

2.

Whether the transaction would fall within related party transactions? If yes, whether the same is done at "arms length"?

 

This agreement does not constitute a related party transaction.

3.

Whether, the promoter/promoter group/ group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof

 

Life Insurance Corporation of India (LIC), a promoter of Axis Bank Limited, currently owns 2.8% shares in the entity.

4.

Industry to which the entity belongs

 

Asset Reconstruction Company registered with RBI under SARFAESI Act, 2002 as a Securitization Company.

 

5.

Objects and Effects of Acquisition

 

Financial Investment

6.

Brief details of any governmental or regulatory approvals required

 

Completion of transaction is subject to approval from the Reserve Bank of India

7.

Indicative time period for completion of Transaction

 

January 2017

8.

Nature of consideration and details of the same

 

Cash Consideration of INR 22,71,78,354/-

9.

Cost of acquisition or price at which the shares are acquired

 

INR 31 per equity share

10.

Percentage of shareholding / control acquired and / or number of shares acquired

 

Percentage Holding:  13.67%

No of Equity Shares:    73,28,334

11.

Brief background of the entity

Date of Incorporation: 11 June 2002

 

Products / Line of Business: Acquisition, resolution and disposal of financial assets acquired from Banks and Financial Institutions

 

Historical Turnover (INR crore):

Financial Year

2014

2015

2016

Income

18.0

25.5

35.9

 

Country: India

 

 

 

 

You are requested to take note of above and arrange to bring it to the notice of all concerned.

 

Thanking You.

 

Yours sincerely,

For Axis Bank Limited

 

 

Girish V. Koliyote

Company Secretary

 

Encl.: as above

 


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