Baring, GIC in talks to buy 49% stake in PNB Housing Finance

Aug 07 2014, 03:15 IST
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SummaryBaring Asia and Singapore’s GIC are said to be in talks to invest about $175 million to buy 49% stake in PNB Housing Finance, which is held by investment firm New Silk Route.

Baring Asia and Singapore’s GIC are said to be in talks to invest about $175 million to buy 49% stake in PNB Housing Finance, which is held by investment firm New Silk Route.

The deal could be finalised in about a month if talks succeed, two persons in know of the matter said. However, they refused to be identified as negotiations were still private.

PNB Housing Finance is a domestic mortgage lending unit of the state-run Punjab National Bank, which holds the remaining 51% stake.

“New Silk Route is in talks with multiple parties, including Baring Asia, for the exit,” one of the sources told Reuters. Baring Private Equity Asia and New Silk Route Growth Capital declined to comment. GIC did not immediately respond to a Reuters query. New Silk Route first invested in the mortgage lender in 2009 by picking up a 26% stake, and it later increased the holding to 49%.

A source estimated that New Silk Route’s two-tranche investment was R200 crore.

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