The Competition Commission of India (CCI) on Tuesday approved Bain Capital’s proposed acquisition of stake in Manappuram Finance (MFL) through its affiliates.
Bain Capital in March announced that it had entered into definitive agreements to acquire joint control in Manappuram Finance through its affiliates – BC Asia Investments XXV and BC Asia Investments XIV – in partnership with the existing promoters.
As part of the agreement, Bain Capital will invest Rs 4,385 crore to acquire an 18% stake in the company on a fully-diluted basis via preferential allotment of equity and warrants.
The proposed transaction involves subscription to 92.9 million fully paid-up equity shares of Manappuram Finance by BC Asia Investments XXV through private placement and preferential allotment, the CCI said in a release on Tuesday. “Further, subscription to 9,29,01,373 warrants of MFL by acquirer 2 (BC Asia Investments XIV), which can be exercised (in one or more tranches) at any point between 4 and 18 months from their date of allotment, each carrying a right to subscribe to 1 equity share of MFL,” the release said.
These actions can be exercised in one or more tranches at any point between 4 months and 18 months from their date of allotment, each carrying a right to subscribe to one equity share of Manappuram Finance.
The proposal also includes an open offer by BC Asia Investments XXV to acquire up to 244.2 million equity shares of Manappuram Finance, which represents a 26% stake in the company on an expanded capital basis.
The CCI has also approved the acquisition of Manappuram Asset Finance by Manappuram Finance. Manappuram Asset Finance is a an NBFC engaged mainly in providing gold loans. It also provides loans against property, vehicle loans, two-wheeler loans and microfinance loans.