State-owned Jammu & Kashmir Bank signed an escrow agreement with MetLife International and Barclays group companies to sell PNB MetLife India Insurance shares amounting to nearly Rs 120.10 crore. Each share will be sold at a price of Rs 117.20, and the contract was signed on Monday, after market hours.
J&K Bank- PNB MetLife agreement details
Through the escrow agreement, J&K Bank will deposit and transfer shares to MetLife International Holdings, Barclays Securities (India) Private, Barclays Bank PLC, and Barclays Wealth Trustees (India) Private to ensure the interests of both parties.
Each share will be sold at a price of Rs 117.20 per equity share, aggregating to Rs 120,09,89,186. Prior to this, the lender had inked a share purchase agreement with PNB MetLife India on July 17 to acquire a 0.5% stake in the company.
As per the terms of the escrow agreement, Barclays Wealth Trustees (India) will act as the share escrow agent, and Barclays Bank PLC as the cash escrow agent, for the deposit and transfer of the equity shares and purchase consideration. This will be done in a bid to protect the interests of the involved parties and execute the transaction.
The bank clarified that no special rights have been assigned to it or MetLife International Holdings, LLC, for the mentioned transaction. It added that it does not have any shareholding in these parties as well.
The transaction does not fall under the ambit of related party transactions, and J&K Bank is not related to MetLife International Holdings, LLC, the escrow agents, or PNB MetLife India Insurance Company.
J&K Bank share price
Jammu&Kashmir Bank share price ended Monday’s trade flat. Over the past one month, its stock has declined by 2%, while over the past six months its share price has advanced by 26%.