CCI clears Verventa Holdings, Carlyle Group's stake purchase in YES Bank

Yes Bank had announced on September 20 that its board approved the sale of $6 billion stressed debt to private equity firm JC Flowers

The Competition Commission of India (CCI) on October 20 approved the proposed Rs 8,900 crore deal wherein two entities will buy stakes in YES Bank.

Verventa Holdings, an affiliate of funds managed by Advent International, will be acquiring equity securities up to 10 percent in the lender while CA Basque Investments, part of the Carlyle Group, will also acquire a 10 percent stake in it.

The CCI said in a release issued on October 20: “The Commission approved the proposed combination relating to the acquisition of equity securities amounting to up to 10 percent of the total paid-up share capital and voting rights of the target (Yes Bank) by the acquirer (Verventa Holdings).”

Also read: Yes Bank approves sale of $6 billion stressed debt to JC Flowers

Both the Carlyle Group and Verventa Holdings are set to pour money into the bank against 184.8 equity shares each and Rs 128.37 crore warrants each.

Verventa Holdings, an investment holding company, does not currently have any operations in India.

Notably, YES Bank is set to raise Rs 8,898.47 crore from Carlyle Group and Advent (Verventa Holdings) by selling a 10 percent stake each. The board of directors has approved to allot Rs 369.61 crore equity shares at a price of Rs 13.78 per share and Rs 256.75 crore warrants exchangeable into equity shares, at a price of Rs 14.82 per share, through preferential allotment on a private placement basis, which is subject to the approval of shareholders and RBI.

Further, YES Bank had announced on September 20 that its board approved the sale of $6 billion stressed debt to private equity firm JC Flowers after the bank received no challenger bids to JC Flowers' base bid for the Rs 48,000 crore NPA portfolio.