Sumary of PNB Housing Finance-Carlyle deal under SEBI scrutiny:
- Is PNB Housing Finance giving control of its Housing Finance business to PE major Carlyle at a lower priced deal without extracting control premium?.
- Marker regulator SEBI is looking into the capital raising plan announced by PNB Housing Finance, since corporate governance experts have raised red flags..
- Mumbai based SES, a proxy advisor to shareholders, said that PNB Housing finance was surrendering control of PNB housing and the deal was an abuse of minority shareholder rights..
- ‘Gives controlling power’ Carlyle along with Persons Acting in Concert would hold more than 50 per cent stake in the company, which gives them controlling power, in terms of voting rights as per SEBI Takeover Code, SES said..
- Since, the chairperson shall have the casting vote (Article 109(b) of PNBHFL) in case of a tie, Carlyle is effectively controlling the board also,”.
- If one observes P/E or P/BV ratio of private Housing Finance Companies (‘HFC’), this can easily be spotted,”…