(Oct 24): Blackstone Inc will become the largest shareholder in India’s Federal Bank after injecting about US$706 million into the lender.
Asia II Topco XIII Pte, an affiliate of the private equity giant, is paying 61.97 billion rupees for warrants that will result in a 9.99% stake in Federal Bank, the lender said in a statement Friday.
Federal Bank will issue 272.97 million warrants to Asia II Topco XIII, which can then be converted into an equal number of shares within 18 months at 227 rupees each. That’s about 0.4% below Thursday’s closing price.
The Blackstone affiliate will also have the right to nominate one non-executive director to the Federal Bank board after its holding has risen to at least 5% following the conversion of the warrants. Asia II Topco XIII will initially pay 25% of the price to buy the warrants and the remaining 75% at the time of allotment of shares upon conversion.
Uploaded by Lam Seng Fatt
