Emirates NBD Bank has announced an open offer to acquire up to 26% of RBL Bank’s equity shares. The offer is for up to 415,586,443 equity shares at a price of ₹280.00 per share, totaling a potential investment of ₹116,364,204,040. This move will increase Emirates NBD Bank’s stake and influence within RBL Bank, pending regulatory approvals. The open offer is managed by J.P. Morgan India Private Limited.
Open Offer Details
Emirates NBD Bank has made a public announcement regarding an open offer to acquire up to 415,586,443 fully paid-up equity shares of RBL Bank. This represents 26.00% of the expanded voting share capital. The offer price is set at ₹280.00 per equity share.
Financial Implications
The total consideration for this acquisition, assuming full acceptance of the open offer, amounts to ₹116,364,204,040. The transaction is structured to comply with regulations concerning substantial acquisition of shares and takeovers.
Strategic Rationale
This open offer allows Emirates NBD Bank to potentially increase its stake in RBL Bank, facilitating its strategy to operate in India through a subsidiary model. The acquisition is subject to various regulatory approvals including those from the RBI, CCI and other relevant authorities.
Management & Advisors
J.P. Morgan India Private Limited is managing the open offer. Emirates NBD Bank intends to comply with all obligations. The acquisition is anticipated to enable Emirates NBD Bank to become a promoter of RBL Bank.
Shareholding Changes
Post-acquisition, Emirates NBD Bank aims to hold up to 74.00% of RBL Bank’s expanded voting share capital. The exact shareholding will depend on the number of shares tendered in the open offer and is subject to certain conditions for foreign investment limits.
Source: BSE
