Punjab National Bank has terminated an Rs 18.5 bn deal to sell stake in PNB Housing Finance Ltd to General Atlantic Group and Varde Holdings as approval from banking regulator could not be obtained before long-stop date, or the final deadline, that expired Wednesday.
“Since all conditions precedent to completion of the transaction are yet to be fulfilled and accordingly the completion has not occurred as on date (i.e., 15 May 2019 being the Long Stop Date under the share purchase agreement), the share purchase agreement stands terminated with immediate effect,” the bank informed stock exchanges Thursday.
As part of conditions to the deal, regulatory approvals from the Competition Commission of India, National Housing Bank and Reserve Bank of India were required. While, CCI and NHB approved the deal, the RBI did not approve exemption from pricing guidelines.
