Thursday , December 1 2016
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Indiabulls Housing to buy 40% in UK bank for $100 mn

Housing

New Delhi: Indiabulls Housing Finance today said it will acquire a 39.76 per cent stake in the UK’s OakNorth Bank for USD 100 million (about Rs 661 crore).

The company said the acquisition will help it chart a roadmap to a deposit-taking franchise.

“Pursuant to all applicable regulatory approvals from relevant regulators in lndia and the UK… Indiabulls Housing Finance Ltd’ is investing USD 100 million for 39.76 per cent stake in OakNorth Bank, a licensed UK commercial Bank… The company will be the largest shareholder in the bank,” Indiabulls Housing Finance said in a regulatory filing.

It further said: “Sameer Gehlaut, Chairman of the company, will be investing in his persona| capacity up to 10 per cent stake in OakNorth Bank at the same valuation.”

Indiabulls Housing Finance said the investment has been identified and approved by the Strategic Investment Committee for Liability Franchise Development headed by K C Chakrabarty, an independent director on the Board and ex-Deputy Governor of the Reserve Bank of India, specially constituted by the Board for the purpose of creating a practical roadmap to a deposit-taking franchise.

It further said: “Investment in OakNorth Bank will benefit the company with a global platform for building its track record of a deposit franchise in a highly regulated market.