State-owned Central Bank of India will exit its housing finance joint venture by selling its entire stake of more than 64% to Centrum Housing Finance for ₹160 crore.
“This is to inform that the bank has entered into a binding agreement to divest its entire equity stake of 64.4% i.e. 1,61,00,000 shares of face value of ₹10 each in Cent Bank Home Finance Ltd (CBHFL), to Centrum Housing Finance, subject to approvals from regulatory authorities,” Central Bank of India said.
According to a separate filing by Centrum Capital, the parent of Centrum Housing, the cost of acquisition is about ₹160 crore.
Centrum Capital said the deal was expected to close in about 2-3 months.
CBHFL is a financing and mortgage firm jointly promoted by Central Bank of India, National Housing Bank, Specified Undertaking of Unit Trust of India and Housing and Urban Development Corporation.
The company’s assets under management stood at ₹1,211.7 crore as of September 30. Total income was ₹65.81 crore.
