“In the instant transaction there will be divestment of GoI and LIC shareholding in
along with transfer of management control. The open offer can be triggered as per SEBI’s regulations in this regard,” the division mentioned Friday in response to queries from potential bidders.
The mandate obtained from Cabinet Committee on Economic Affairs is to off-load upto 100 per cent stake of presidency and LIC together with switch of administration management, the division mentioned.
“It (stake to be sold) will be determined, as we go through the transaction and ascertain investors’ interest, market appetite etc. It is clarified that LIC’s stake will be sold along with GoI’s shareholding in this transaction,” it added.
It additional mentioned that the choice of remaining co-promoters or in any other case would be contingent on the share of stake sale.
It prolonged the deadline for submission by transaction advisors for strategic divestment of IDBI Bank until July 22 from earlier date of July 13.
Government additionally clarified that bidders for appointment of transaction advisor for strategic divestment of IDBI Bank won’t be allowed to bid in consortium, including that after appointed the advisor will stay for 5 years.
1 / 4 of the charge cost to the advisor will be paid on the time of shortlisting of bidders after expression of curiosity (EoIs) are obtained. The relaxation will be paid submit completion of the transaction.
The authorities has kick-started the method of sale of its stake in IDBI Bank, the place authorities shareholding is at 45.48 per cent, LIC of India shareholding is at 49.24 per cent and non-promoter shareholding is at 5.29 per cent.
The DIPAM has barred public sector banks, which can not take part as bidders for acquisition of IDBI Bank in the transaction course of. Subsidiaries of IDBI Bank – IDBI Capital Markets – can not take part as bidders both for transaction advisors.
The DIPAM has barred an individual or firm proudly owning greater than 50 per cent fairness curiosity in the service provider banker or controlling the service provider bankers from taking part in the aggressive course of for acquisition of IDBI Bank.
In case the transaction advisor is a subsidiary of an current retail financial institution, they want to present documentation explaining firewall or Chinese-wall construction to preserve confidentiality and battle of curiosity.
The Cabinet Committee on Economic Affairs had given an in-principle approval for the strategic divestment of IDBI Bank in May this yr.