CDC to take stake in UTI Bank

By Our Special Correspondent

MUMBAI, SEPT. 21. CDC Capital Partners, formerly Commonwealth Development Corporation, is planning to acquire 26 per cent stake in UTI Bank.

The board of directors of UTI Bank, at a meeting here today, announced a preferential allotment of shares in favour of two of the funds managed by CDC - South Asia Fund and CDC Financial Services (Mauritius).

The bank's board has resolved to allot 46.35 million shares (17.80 million shares to South Asia Regional Fund and 28.99 million shares to CDC Financial Services (Mauritius)) at a uniform price of Rs. 34 per share.

This price is at a premium of 13.18 per cent to the Securities and Exchange Board of India (SEBI) formula price (which is the higher of the average of weekly high and low closing prices during the last six months and the last two weeks) of Rs. 30.04.

The total investment would amount to Rs. 157.59 crores, providing the two funds with 26.01 per cent of the expanded share capital of the bank. The bank's paid up capital will rise by 35.1 per cent.

This preferential issue is subject to necessary approvals by the shareholders of the bank.

An extraordinary general meeting is proposed to be convened on October 23 in Ahmedabad for this purpose.

The shareholding structure of the bank after the preferential issue will be: UTI's shareholding in the bank will decline from 60.65 per cent to 44.88 per cent; LIC, GIC and GIC subsidiaries from 12.59 per cent to 9.31 per cent; other shareholders from 26.76 per cent to 19.80 per cent, South Asia Regional Fund 9.99 per cent and CDC Financial Services (Mauritius) 16.02 per cent.

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Section  : Business
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