State-owned Central Bank of India will exit housing finance joint venture by selling its entire stake of over 64 per cent to Centrum Housing Finance for Rs 160 crore.
The target entity is in the same line of business as the subsidiary, hence this is a strategic acquisition.
Statement of Bank at BSE
“This is to inform that the bank has entered into a binding agreement to divest its entire equity stake of 64.40 per cent i.e. 1,61,00,000 shares of face value of Rs 10 each in Cent Bank Home Finance Ltd (CBHFL), to Centrum Housing Finance, subject to approvals from regulatory authorities.”
About Centrum Capital
Centrum Housing Finance Ltd. is a financing and mortgage company.
It is jointly promoted by four public sector company:
- Central Bank of India,
- National Housing Bank,
- Specified Undertaking of Unit Trust of India (SUTTI) and
- Housing and Urban Development Corporation (HUDCO)
Present in nine states, the company’s customers include individuals, associations of persons, companies, corporations and societies.
Company’s Financial
The company’s asset under management stood at Rs 1,211.70 crore as of September 30, 2020.
Total income was Rs 65.81 crore.
Transaction Clearance
Centrum Capital said the deal is expected to be closed in about two to three months.
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