IDBI Bank entered a share purchase agreement with Muthoot Finance to sell stake in its subsidiary IDBI Asset Management and IDBI MF Trustee Company.
IDBI Bank said that the bank has amongst other parties entered a Share Purchase Agreement (SPA) with Muthoot Finance (buyer) on 22 November 2019 where under IDBI Bank has agreed to sell its (a) entire 66.67% equity shares in its subsidiary IDBI Asset Management, and (b) entire 100% equity shares in its subsidiary IDBI MF Trustee Company, to the buyer.
Under the SPA along with IDBI Bank, IDBI Capital Markets & Securities has also agreed to sell its entire 33.33% equity shares in its subsidiary IDBI Asset Management. The announcement was made after market hours yesterday, 22 November 2019.
IDBI Bank rose 16.19% to settle at Rs 38.75 yesterday, 22 November 2019.
The transaction is proposed to be completed by end of February 2020 subject to the satisfaction of the terms and conditions set out in the SPA.
Muthoot Finance is a leading gold financing NBFC in India and has approx. 4,500 branches spread across the country.
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