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ADB acquires additional stake in Centurion Bank

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Our Bureau Kolkata
Last Updated : Feb 28 2013 | 1:54 PM IST
Asian Development Bank (ADB), and Kephinance Investment [Mauritius] Pte Ltd (KIPL) have acquired an additional 6.5 per cent stake in Centurion Bank Ltd as part of their commitment to infuse an additional Rs 25 crore into the equity of the company.
 
Post acquisition, the joint holding of these multilateral agencies stand at 15 per cent of the total capital.
 
ADB has acquired an additional 1.5 per cent stake in Centurion, enhancing its total holding to 4.5 per cent. KIPL's holding in the bank stands at 10 per cent.
 
Both these entities jointly held around 18 per cent prior to the equity restructuring and the merger at Centurion, after which it was reduced to eight per cent.
 
Sabre Capital Worldwide and Sabre Capital Ltd has acquired warrants and equity in the bank. Sabre Capital Worldwide, along with Sabre Capital Ltd, had acquired 4.33 per cent and 1.27 crore convertible warrants.
 
The warrants would be converted into equity in the next five years and that would translate into a 19 per cent holding for these companies.
 
As part of the merger scheme between Centurion Bank and Bank Muscat, the latter had also acquired around 34.76 per cent of the total sharecapital of Centurion Bank Ltd.
 
This was through a combination of four crore equity shares of Rs 1 each for cash at par aggregating to Rs 4 crore, along with 23.45 crore equity shares of Re 1 each for cash at a premium of Rs 3 per share aggregating to Rs 93.79 crore and 11.25 crore equity shares of Re 1 each at a premium of Rs 3 per share aggregating to Rs 4.5 crore to Bank Muscat (SAOG) in consideration for the transfer of business of the Bangalore Branch of Bank Muscat into Centurion Bank.
 
Centurion has also allotted 1.35 crore warrants to Sabre Capital Worldwide Inc which are convertible into 1.35 crore equity shares of Re1 each at a premium of Rs 3 per share at any time after the infusion of capital of around Rs 219 crore into the Bank.
 
The bank has also recently reduced its total paid up equity capital from Rs 152.47 crore to Rs 15.25 crore, through reduction of face value of shares of Rs 10 each to Rs 1 following which, the holding of the foreign holders stood declined.

 
 

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