Yes Bank’s board credit committee is meeting on July 13 to consider a joint venture (JV) partner for an asset reconstruction company (ARC), CNBC-TV18 reported.
US-based private equity firm JC Flowers emerged as the highest bidder for the private lender's proposed ARC. Foreign private equity firms such as Cerberus Capital and Apollo Global, too, were in the fray to partner with Yes Bank for its ARC foray.
Also Read: Yes Bank’s floating rate FD aims to benefit from interest rate hikes. Should you invest?
Yes Bank will hold a Swiss Challenge auction to invite counter bids with JC Flowers' offer as anchor bid post-board nod, according to CNBC-TV18.
The bank will also seek Reserve Bank of India's approval for its 20 percent stake in the ARC after the Swiss auction and 80 percent stake to be held by the foreign partner.
JC Flowers' deal valued Yes Bank's non-performing asset (NPA) portfolio at Rs 12,100 crore, higher than other suitors - net of recoveries since evaluation. Yes Bank is looking to transfer approximately Rs 51,000 crore of loans to an ARC to clean up its books.
At 12.39 pm, shares of Yes Bank were trading 0.45 percent lower at Rs 13.28 apiece on the BSE.
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