Jobaaj Stories
The Board of private lender Yes Bank has agreed to the transfer of stressed loans worth Rs 48,000 crores to JC Flower Asset Reconstruction Company.
J. C. Flowers & Co. is a Private Equity firm that was founded in 1998. Its global investment platform has invested in 60 portfolio companies across 18 countries.
J. C. Flowers was the sole bidder for Yes Bank's NPA portfolio with its bid being Rs 11,183 crores. The ARC will be paying Rs 1,677 crores within 60 days under its 15:85 structure. The balance will be paid in security receipts which will be redeemed when the ARC recovers money from the defaulters.
Yes bank involved in another crores-worth scam, read now.
"The Swiss Challenge process has now concluded and the Bank not having received any Challenger Bids to the Base Bid, the Board of Directors of the Bank, at their Meeting held on September 20, 2022, has approved the declaration of JC Flowers ARC as the winner of the Swiss Challenge process," Yes Bank said in a statement.
This move will allow the bank to emerge in the next year with a clean balance sheet. Moreover, the bank was also considering purchasing a 20% stake in J. C. Flowers at the time, and the same has been confirmed for a consideration of Rs 350 crores.
“Further, pursuant to the binding term sheet signed by the Bank with JCF ARC LLC and JC Flowers ARC for strategic partnership in relation to the sale of the Identified Portfolio of the Bank, the Board of Directors of the Bank, at their Meeting held on September 20, 2022, has also approved the necessary investment for the acquisition of up to 19.99% equity stake in JC Flowers ARC by the Bank (in single or multiple tranches), subject to required regulatory approvals," the statement also said.
Investors responded positively to the news as the stock jumped 3% today. It currently trades at around Rs 16.90 per share, up 3.05%.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
