The board of the Catholic Syrian Bank will meet to authorize the sale of 14.5% equity by its main shareholder, Bangkok-based NRI businessman Sura Chansrichawla to a group of non-resident investors.
But while the board gets ready for the stock transfer, there are whispers of a bigger deal in the pipeline. Another group of CSB shareholders led by a local stockbroker holding 12% equity in the bank, is bargaining with a different group of buyers, while 3 private equity funds with slightly less than 5% each in the bank have decided to exit at the ‘right time’.
As per an insider, the 3rd transaction will be the sale by the private equity investors (PEs): AIF, Gartmore and Siguler Guff, who purchased a total of more than 14% shares of CSB in 2007. But it was refuted by AIF Capital MD Ajay Lal, a CSB board member having the authority to vote on behalf of the other two PEs. He said, “We are not selling…there is no truth in this”.
But a group of senior bankers said that a bulk of CSB shares can be as high as 40%, will change ownership in 3-4 tranches this year. The buying investor is ready to pay more than Rs 120 crore for the Rs 33 crore the PEIs had invested. With this, the bank will be valued at around Rs 900 crore.
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