Blackstone is picking up warrants in Federal Bank, which if converted would make it a 9.99% shareholder of the bank.
- The deal is for a total of Rs 6,196 cr
- 25% will be invested now and balance 75% within 18 months if Blackstone decides to convert.
- Per share price is fixed at Rs 227/ share, similar to it’s currently prevailing price.
- Blackstone will be entitled to a Board seat on conversion till it’s shareholding remains at above 5%.
- Deal has been agreed to boost the capital base of the bank.
KVS Manian, the MD & CEO of the Bank has said that the deal would also help the bank to pursue acquisition opportunities.