The state-owned Central Bank, which was to exit its housing finance venture by selling 64% of stake to Centrum Housing Finance Limited, announced on Wednesday that the deal between the two companies is no longer valid.
Earlier in December, the bank had said that it would exit housing finance joint venture by selling its entire stake of over 64% to Centrum Housing Finance for ₹160 crore.
The Central Bank said on Wednesday, “… Bank has entered into a binding agreement to divest its entire equity stake in Cent Bank Home Finance Limited to Centrum Housing Finance Limited, subject to approval from regulatory authorities.”
“Further to above, we now inform that the long stop date of the share purchase agreement being 31 March 2021 has lapsed. Therefore the said binding agreement/share purchase agreement stand rescinded with effect from 1st April 2021,” it further added.
Centrum Capital, the parent of Centrum Housing, said in December that the cost of acquisition is about ₹160 crore on cash basis and the deal is expected to be closed in about two to three months.