The Competition Commission of India (CCI) has approved Emirates NBD Bank’s proposal to acquire a majority stake in RBL Bank.
Under the proposed deal, Emirates NBD Bank plans to acquire between 51% and up to 74% shareholding in RBL Bank.
The transaction will be carried out through a combination of an open offer, a preferential allotment of shares and the merger of Emirates NBD’s India operations with RBL Bank.
As part of the process, Emirates NBD will make a mandatory open offer under SEBI takeover rules to acquire up to 26% of RBL’s expanded voting capital. In addition, RBL will issue equity shares to Emirates NBD through a preferential allotment, which could result in the foreign bank holding up to 60% of RBL’s total paid-up equity share capital.
Merger of India operations into RBL
The deal also includes the proposed amalgamation of Emirates NBD’s banking operations in India with RBL Bank. Emirates NBD currently operates in India through three branches, and these branches will be merged into RBL on a going concern basis.
This move is expected to consolidate Emirates NBD’s presence in India under a single banking entity.
About Emirates NBD
Emirates NBD is a public joint stock company listed on the Dubai Financial Market and is headquartered in Dubai, United Arab Emirates. The banking group operates across several countries, including India, and offers a wide range of services such as retail banking, corporate and institutional banking, Islamic banking, investment banking, private banking, asset management, treasury and brokerage services.
About RBL
RBL Bank is a listed private sector bank in India and provides banking, financial and insurance-related services. Its offerings include deposit products, loans, digital payment solutions and cash management services. RBL also operates an IFSC Banking Unit in GIFT City, which functions as an overseas branch.
RBL Bank share price
The share price of RBL Bank has increased 3.06% in the intra-day trade on Wednesday. The stock has gained 13.53% in past six months