Canara Bank on Friday said it has sold 13.45 per cent stake in CanFin Homes Ltd to Singapore-based Caladium Investment Pvt Ltd for ₹753.77 crore in an off-market deal.
Caladium Investment, which is an affiliate of GIC (Singapore’s sovereign wealth fund), bought 35.80 lakh CanFin Homes shares at ₹2,105 a share.
As at December-end 2016, the Bengaluru-headquartered public sector bank held 43.45 per cent stake in CanFin Homes. Following, the stake sale, the bank now holds 30 per cent stake in the housing finance company.
Canara Bank said the sale in the associate company is part of its efforts at monetising non-core assets. Bengaluru-headquartered CanFin Homes was established in 1987 by Canara Bank. In the nine months ended December 31, 2016, the company recorded a 49 per cent year-on-year jump in net profit at ₹164 crore. Canara Bank shares closed at ₹284.20 apiece, down 0.73 per cent, while CanFin Homes closed at ₹1,977.65 apiece, up 2.11 per cent, on the BSE.
JM Financial, which was an advisor to Canara Bank on CanFin Homes stake sale to GIC, Singapore, in a statement said “The deal price implies a 9 per cent premium to the previous day’s closing price and P/BV (price to book value) multiple of 5.5 times December 2016.”