InvestorQ : Can you tell me where the dispute between PNB Housing and SEBI on the Carlyle group now stands?
Katherine Gonsalves made post

Can you tell me where the dispute between PNB Housing and SEBI on the Carlyle group now stands?

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rhea Babu answered.
2 months ago
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Here is a quick background on the PNB Housing versus SEBI dispute on the Carlyle deal. After 5 months of wrangling, PNB and Carlyle have mutually opted to call off the deal citing non-feasibility in the light of the legal obstacles. As per the deal, Carlyle was to fund PNB Housing to the tune of Rs.4,000 crore in exchange for becoming the largest shareholder of PNB Housing. This was necessitated since PNB was not in a position to infuse funds.

The problems with the deal came up on 3 counts. Firstly, proxy advisors felt that the price was as too low and not in the interest of small owners. Secondly, the deal did not seek any independent opinion on valuation, which was the norm, although not mandatory for listed entities. Lastly, there were objections on the private placement over doing a rights issue at a reasonable price. All these led SEBI forcing the deal to be subject to independent valuation.

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