Emirates NBD Open Offer for RBL Bank Starts Dec 12

New Delhi, Nov 5 (PTI) RBL Bank on Wednesday said an open offer by Emirates NBD Bank will commence from December 12 to acquire up to 26 per cent of shares from the public.

The period for tendering of public shares will close on December 26, RBL Bank said in a regulatory filing.

This open offer under the SEBI (SAST) Regulations is to acquire up to 415,586,443 shares of face value of Rs 10 for Rs 280 per unit, representing 26 per cent of the expanded voting share capital from the public shareholders, it said.

Last month, Emirates NBD Bank, the second largest in the UAE, announced a plan to acquire a majority 60 per cent stake in RBL Bank for Rs 26,853 crore, the biggest-ever financial sector deal in value terms.

The acquisition plan of Emirates NBD Bank to hold a controlling stake in RBL Bank through an infusion of approximately USD 3 billion (about Rs 26,850 crore) marks the largest-ever foreign direct investment in India's financial services sector.

The proposal came days after Japan's SMBC picked up a 24.9 per cent stake in private sector Yes Bank for a total consideration of Rs 16,333 crore.

The board of RBL Bank, while approving the quarterly financial numbers, approved the proposal for raising up to Rs 26,853 crore from Emirates NBD Bank, subject to various regulatory filings, the bank had said in a regulatory filing.

The board approved the issue and allotment, by way of a preferential issue of up to 95.90 crore fully paid-up equity shares of the RBL Bank, each having a face value of Rs 10, which is equivalent to 60 per cent of the post-preferential equity share capital for Rs 280 per unit aggregating to Rs 26,853 crore to NBD Bank.

The board approval for stake sale comes at a time when RBL Bank posted a 20 per cent decline in the second quarter profit at Rs 179 crore, as against Rs 223 crore in the July-September period of the previous year.

Upon consummation of the preferential issue contemplated under the investment agreement, NBD Bank will acquire control over the RBL Bank and will be classified as a promoter, and the acquired bank will be classified as a subsidiary of a foreign bank, subject to necessary regulatory approvals, it said.

The preferential issue has triggered an obligation on NBD Bank to make an open offer to the shareholders of the RBL Bank in terms of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as amended, it said.