The PSU bank has entered into a binding agreement to divest its entire 64.40% stake in Cent Bank Home Finance to Centrum Housing Finance.
"This is to inform that the bank has entered into a binding agreement to divest its entire equity stake of 64.4% i.e. 1,61,00,000 shares of face value of Rs 10 each in Cent Bank Home Finance to Centrum Housing Finance, subject to approvals from regulatory authorities," Central Bank of India said in a regulatory filing on Thursday (24 December 2020).According to a separate filing by Centrum Capital, the parent of Centrum Housing, the cost of acquisition is about Rs 160 crore. The company said the deal was expected to close in about 2-3 months.
Cent Bank Housing Finance is a financing and mortgage firm jointly promoted by Central Bank of India, National Housing Bank, Specified Undertaking of Unit Trust of India and Housing and Urban Development Corporation.
The company's assets under management stood at Rs 1,211.70 crore as of 30 September 2020 while its total income was Rs 65.81 crore.
Shares of Central Bank of India were up 1.37% at Rs 14.05 while Centrum Capital was up 4.95% at Rs 16.95 on BSE.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU