Carlyle Group's proposed Rs 4,000 crore infusion in PNB Housing Finance Limited (PNBHFL) has received approval from the Competition Commission of India (CCI), reports said on August 4.
Sources privy to the development told Economic Times that the CCI has given its assent to the investment plan, despite a judgment on the matter being awaited from the Securities Appellate Tribunal (SAT).
After reports of CCI's approval to Carlyle-PNBHFL deal emerged, the shares of PNB Housing surged by 4.99 percent at the National Stock Exchange.
The deal would make Carlyle the majority shareholder in PNBHFL. Earlier, SEBI had directed PNBHFL to halt the proposed deal until the company undertakes a fresh valuation from an independent valuer.
Later, SAT allowed the company to conduct the AGM but asked it to not announce the results of the AGM till a final order. SAT's order is pending in this case.
SEBI had said that the notice given on May 31 for Extraordinary General Meeting (EGM) is "ultra-vires of the Article of Association (AOA) and shall not be acted upon until the company undertakes the valuation of shares as prescribed under 19(2) of AOA, for the purpose of preferential allotment, from an independent registered valuer as per the provisions of applicable laws. The said report shall be considered by the company’s board while deciding on the preferential issue of shares and warrants.”
PNBHFL moved the SAT after the SEBI stay on the transaction. On July 7, PNBHFL informed exchanges that PNB had asked it to reconsider the structure of the Rs 4,000-crore investment proposal from the Carlyle-Aditya Puri combine in the current form and seek an alternative plan.
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