CCI approves Currant Sea Investments' acquisition of stake in IDFC First Bank
The Competition Commission of India (CCI) on Tuesday approved the proposed acquisition of up to 9.99 per cent of the paid-up share capital of IDFC First Bank by Current Sea Investments BV.
The transaction involves Currant Sea Investments B.V. subscribing to 81,26,94,722 compulsorily convertible cumulative preference shares (CCPS) of IDFC First Bank. This will result in the acquirer holding a stake of up to 9.99 per cent in the bank on a fully diluted basis.
"The proposed combination entails the acquisition of up to 9.99% of the paid up share capital (on a fully diluted basis) of IDFC First Bank Limited (IDFC/Target) by way of subscription to 81,26,94,722 compulsorily convertible cumulative preference shares (CCPS) by Currant Sea Investments B.V. (Currant Sea/Acquirer)," the CCI said.
"The Target is engaged in the business of providing banking services i.e., taking deposits; providing loans, credit cards; distributing mutual fund and insurance products and providing other financial solutions like corporate banking solutions, banking solutions for MSMEs, NRI banking, transaction banking & cash management solutions, FASTag, trade finance, treasury & forex solutions and wealth management solutions," according to the competition regulator.
IDFC First Bank Limited is a banking entity engaged in providing a wide range of financial services. These include accepting deposits, offering loans and credit cards, distributing mutual fund and insurance products, and providing corporate banking, MSME banking, NRI banking, transaction banking, cash management, FASTag, trade finance, treasury, forex, and wealth management solutions.
Currant Sea Investments B.V. is an investment holding company incorporated in the Netherlands and operates as an affiliate of Warburg Pincus LLC, a global private equity firm headquartered in New York. The company primarily functions as an investment vehicle for Warburg Pincus, facilitating strategic investments in various sectors.
The Competition Commission of India is a government body that makes sure businesses in India play fair and do not cheat or harm other companies or consumers.
