HDFC Bank, the leading private sector lender in India, is seeking to divest its entire stake of 100% in HDFC Education and Development Services through the Swiss challenge method. The bank is currently in the process of selecting the final purchaser.
The lender announced in a regulatory filing on March 30 that it has engaged with an interested party through a binding term sheet, serving as the foundational bid to solicit counter offers from other interested parties.
“In furtherance of the aforesaid RBI direction and after due deliberation and in the interests of maintaining transparency in the proposed divestment, HDFC Bank has decided to undertake the sale of its 100% stake in HDFC Edu. (the “Proposed Transaction”) using the Swiss challenge method. Upon the conclusion of the Swiss challenge process, HDFC Bank will proceed to select the purchaser,” the bank said in its regulatory filing.
Upon selection, the lender and the chosen buyer will proceed to finalize definitive documentation for the proposed transaction. “HDFC Bank shall finalise the purchaser on the basis of the completion of the Swiss challenge process, subsequent to which such purchaser and HDFC Bank will enter into definitive documentation for the purposes of the Proposed Transaction,” said the bank.
“The details of the definitive documentation for the purposes of the proposed transaction which are required to be disclosed in light of the aforesaid regulations shall be submitted upon execution of such definitive documentation,” the bank added.
Previously, the Reserve Bank of India (RBI) had granted approval to HDFC Bank to maintain its ownership in HDFC Edu for two years subsequent to the merger between Housing Development Finance Corporation Limited (HDFC Ltd) and HDFC Bank.
As of Thursday, HDFC Bank Ltd’s shares closed 0.44% higher at ₹1,447 each on the NSE.
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Published: 31 Mar 2024, 10:15 AM IST