RBI has approved Avenir Investment RSC’s proposed acquisition of a controlling stake in Sammaan Capital, the company said on Tuesday.
Avenir Investment RSC is owned and controlled by Abu Dhabi’s International Holding Company PJSC.
As per the deal, Abu Dhabi’s International Holding Capital (IHC) will acquiring a 66.5% controlling stake in India’s Sammaan Capital (formerly Indiabulls Housing Finance).
At Tuesday’s closing price it is valued at ₹7,700 crore. This is one of the largest investments by a Middle Eastern entity in India’s financial services sector.
RBI has set three conditions for the deal. Sammaan Capital cannot raise deposits from the public. Avenir Investment RSC must complete the transfer of shares within a period of one year. Failure will result in cancellation of the approval. If the ownership falls below 26% after the transaction, Avenir Investment RSC requires approval from the Reserve Bank of India to increase the ownership to 26% or beyond.
Source: Economic Times