REG - Axis Bank Ltd - Acquisition <Origin Href="QuoteRef">AXBK.NS</Origin>

Axis BankAnnouncement

09/12/2016 14:35

RNS Number : 4839R
Axis Bank Limited
09 December 2016
December 9, 2016
Dear Sir(s),
SUB: ACQUISITION OF SHARES IN ASSETS CARE AND RECONSTRUCTION ENTERPRISE LIMITED
REF:REGULATION 30 READ WITH PARA A OF SCHEDULE III OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
This is in reference to our letter no. AXIS/CO/CS/494/2016-17 dated 16th September 2016 on the captioned subject regarding acquisition by the Bank of equity shares representing 13.67% of the total paid up share capital in Assets Care and Reconstruction Enterprise Limited ("ACRE" or the "Entity") from IFCI Limited at INR 31 per equity share, for cash aggregating to INR 22.72 crore ("Transaction"). 
This is to inform you that, post receipt of requisite regulatory approvals, the Bank has completed the said acquisition on December 8, 2016. 
The details as required under the Listing Regulations are as under:
Sr. No.
Particulars
Details
1.
Name and Details of Target Entity
Assets Care and Reconstruction Enterprise Limited 
Total Assets: INR 336 crore (FY 2016)
Total Income: INR 35.9 crore (FY 2016)
2.
Whether the acquisition would fall within related party transactions? If yes, whether the same is done at "arms length"?
This agreement does not constitute a related party transaction.
3.
Whether, the promoter/promoter group/ group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof
Life Insurance Corporation of India (LIC), a promoter of Axis Bank Limited, currently owns 2.8% shares in the entity.
4.
Industry to which the entity belongs 
Asset Reconstruction Company registered with RBI under SARFAESI Act, 2002 as a Securitization Company.
5.
Objects and Effects of Acquisition
Financial Investment
6.
Brief details of any governmental or regulatory approvals required 
Completion of transaction was subject to approval from the Reserve Bank of India
7.
Indicative time period for completion of Transaction
Done
8.
Nature of consideration and details of the same
Cash Consideration of INR 22,71,78,354/-
9.
Cost of acquisition or price at which the shares are acquired
INR 31 per equity share
10.
Percentage of shareholding / control acquired and / or number of shares acquired
Percentage Holding: 13.67%
No of Equity Shares: 73,28,334
11.
Brief background of the entity
Date of Incorporation: 11 June 2002
Products / Line of Business: Acquisition, resolution and disposal of financial assets acquired from Banks and Financial Institutions
Historical Turnover (INR crore):
Financial Year
2014
2015
2016
Income
18.0
25.5
35.9
Country: India
You are requested to take note of above and arrange to bring it to the notice of all concerned. 
Thanking You. 
Yours sincerely,
For Axis Bank Limited
Girish V. Koliyote
Company Secretary

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