Private sector lender, HDFC Bank is seeking to sell its 100 per cent stake in HDFC Education and Development Services using the Swiss challenge method. The bank said that it is currently in the process of finalising the purchaser.
HDFC Bank, in a regulatory filing, announced that it has entered into a binding term sheet with an interested party, which will serve as the base bid to seek counter offers from other parties interested in participating in the Swiss challenge process.
In an earlier intimation dated April 21, 2023, HDFC Bank had said that the RBI has permitted the private lender to continue to hold the stake of erstwhile HDFC Limited in HDFC Education for a period of 2 years from the effective date of the composite scheme of amalgamation for the amalgamation of (i) HDFC Investments Limited and HDFC Holdings Limited, wholly owned subsidiaries of HDFC Limited, with and into HDFC Limited and (ii) HDFC Limited with and into HDFC Bank.
“In furtherance of the aforesaid RBI direction and after due deliberation and in the interests of maintaining transparency in the proposed divestment, HDFC Bank has decided to undertake the sale of its 100 per cent stake in HDFC Edu. using the Swiss challenge method,” it said in the exchange filing.
HDFC Bank will finalise the purchaser following the completion of the Swiss challenge process, subsequent to which the purchaser and the Bank will enter into definitive documentation for the purpose of the proposed transaction.
“The details of the definitive documentation for the purposes of the proposed transaction which are required to be disclosed in light of the aforesaid regulations shall be submitted upon execution of such definitive documentation,” it said.