Canara Bank’s Board of Directors has approved the sale of its 70% stake in its unlisted subsidiary, Canbank Factors Limited. The transaction involves transferring 100% of the equity shares to M/s Vidvedaa Private Limited for a total consideration of ₹80.50 crore. This sale is subject to necessary regulatory and statutory approvals, marking a strategic divestment by the bank.
Strategic Divestment Approved by Canara Bank
In a significant development for its strategic asset management, Canara Bank announced that its Board of Directors has granted approval for the sale of its substantial stake in a key subsidiary. The bank has agreed to divest its 70% holding in Canbank Factors Limited, an unlisted entity.
Transaction Details and Consideration
The transaction will be executed through the transfer of 100% of the equity shares of Canbank Factors Limited. The buyer in this significant deal is M/s Vidvedaa Private Limited. The agreed purchase consideration for this stake sale amounts to a substantial ₹80.50 crore. This move signifies a strategic realignment of Canara Bank’s investment portfolio and operational focus.
Regulatory Approvals Pending
It is important to note that the completion of this sale is contingent upon the successful acquisition of all necessary regulatory, statutory, and legal approvals. The bank is working towards fulfilling these requirements to finalize the divestment as per the agreed terms. This disclosure is made for the information and records of the stock exchanges.
Source: BSE
