Emirates NBD is acquiring majority into RBL through primary capital infusion upto $3 Bn (~ Rs 26,850 cr).
- Consequent to the transaction, ENBD is also making mandatory open offer to purchase additional 26% from the public shareholders.
- Open offer price is @ Rs 280/ share against the current trading price of Rs 300/ share
- Depending upon the response from the open offer, the primary infusion stake would be adjusted to ensure compliance with the 74% foreign investment cap.
- Indian branches of ENBD will be merged into RBL Bank as required by the RBI guidelines.
- After completion of the deal, RBL Bank will become the Indian subsidiary of the foreign bank and will continue to be listed on Indian exchanges. Whether it’s name will change to ENBD has not been decided.
This is a significant transaction in the Indian banking sector and sets tone for RBL’s bid to transform into a large private bank.