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Japan : JAPANESE firm ORIX to acquire CENTRAL BANK'S stake in IL&FS

August 27, 2014



Japan diversified financial services firm Orix is understood to have evinced interest in buying the 8.34% stake by Central Bank in infrastructure development and finance company IL&FS.

The top 3 shareholders are LIC with 25.34%, ORIX Japan with 23.04% and Abu Dhabi Investment Authority with 11.09% stake.

The Central Bank appointed SBI Capital Markets to look for a potential buyer.

An earlier instance of a large shareholder increasing its stake another non-core entity TransUnion bought the entire stake of Punjab National Bank and Central Bank of India in Cibil. TransUnion is the largest shareholder with 55% in the credit information company.

FE public sector lender Central Bank of India was planning to earn R860 crore from selling close 1 crore shares of IL&FS.

Central Bank of India owns 98.43 lakh shares in IL&FS.

A view to unlock the value of its strategic investments, the bank intends to disinvest its equity shareholding in IL&FS partly/ fully to interested buyer by way of sale through a competitive bidding process.

The finance ministry is asking banks to explore hiving-off non-core businesses, including insurance and mutual funds, to raise funds to meet Basel III capital adequacy norms. Basel III norms on capital adequacy will come into effect.

Banks funded a number of companies created by the government and the RBI. Companies like NSE, UTI, Cibil, Clearing Corporation of India, Stock Holding Corporation of India, Central Depository Services (India), CARE and IL&FS were established as financial market intermediaries.


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Source: TendersInfo (India)


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