Enam may exit deal with Oaktree to acquire DHFL's insurance business
The 49 percent limit on foreign direct investment is a hurdle for Oaktree Capital in acquiring DHFL Pramerica Life Insurance.
December 29, 2020 / 02:49 PM IST
Investment bank Enam is likely to exit the deal with Oaktree Capital to take over the insurance business of Dewan Housing Finance (DHFL), CNBC-TV18 reported.
Enam was in talks with Oaktree to acquire Pramerica Life Insurance, the insurance joint venture of DHFL, the news channel reported.
The 49 percent limit on foreign direct investment (FDI) is a hurdle for Oaktree Capital in acquiring DHFL Pramerica Life Insurance.
Also read: In latest letter, Kapil Wadhawan repeats his offer to repay Rs 91,000 crore to DHFL's creditors in 7-8 years
Oaktree Capital has said this information is incorrect and inaccurate, while Enam has not yet responded.
In 2019, troubled lender DHFL became the first non-banking finance company to be taken to the bankruptcy court and face insolvency proceedings.
DHFL's Committee of Creditors (CoC) is expected to vote this week on bids from four companies - Oaktree Capital Management, Piramal Enterprises, Adani Group, and SC Lowy.
According to a Mint report, Piramal on December 24 raised its total offer for DHFL to Rs 38,250 crore, higher than Oaktree's offer of Rs 36,400 crore.
Piramal, locked in a bidding war with Oaktree, has emerged as the frontrunner
, sources told the publication. This due to factors such as higher upfront cash payment by Piramal, and the outright buyout of the insurance business.