PSU lender Canara Bank on Tuesday called off divestment process of its stake in Can Fin Homes the housing finance subsidiary of the lender. The bank did not specify the reason behind the move.
Baring PE Asia had emerged as the sole bidder to acquire a controlling stake in the housing finance company in November. Two other contenders, Aditya Birla Capital and Warburg Pincus had pulled out just ahead of the deadline.
In June, Canara Bank had received board approval to sell part or entire 29.99 per cent stake in the subsidiary.
In September 2019, chief executive R A Sankara Narayanan said the bank had received 12 expressions of interest (EoIs) and was expecting Rs 1,000 crore. JM Financial and Kotak Mahindra were advising the lenders in the sale process.
In 2018 as well, Canara Bank had called off the sale process after receiving price bids below expectations. Then too, Baring was the sole bidder after HDFC’s competing stock offer was rejected.
Shares of Canara Bank ended down 0.58 per cent at Rs 215 while Can Fin Homes was up 0.12 per cent at Rs 386.30.
Source: Economic Times