CCI approves Carlyle and Advent Groups investment proposals in Yes Bank
The Competition Commission of India (CCI) has given the green light to CA Basque Investments, part of the Carlyle Group, and Verventa Holdings, a subsidiary of funds managed by Advent, to acquire up to 10% each of the total paid-in private lender capital YES Bank.
Approval of these two combinations would pave the way for YES Bank to sell securities worth ₹8,898 crore to global private equity players Carlyle and Advent Groups. (each being authorized to take up to 10% participation).
It should be recalled that the board of directors of Yes Bank in July this year decided to issue more than 369.61 crore shares and 256.75 crore warrants. These securities will be issued on a preferential basis for a total consideration of ₹8,898.47 crore, according to a regulatory filing in July 2022.
CA Basque Investments (Acquirer) is a newly formed special purpose vehicle (incorporated in the Republic of Mauritius) and is wholly owned by CA Marans Investments (incorporated in the Republic of Mauritius), which is ultimately controlled by the funds managed by the affiliates of The Carlyle Group Inc.
The acquirer is an investment holding company and has no business activities in India.
The Carlyle Group Inc. is a global investment firm that manages funds that invest globally in three investment disciplines: (a) global private equity (including private equity funds, real estate and natural resources); (b) aggregate credit (including liquid credit, illiquid credit and real asset credit); and (c) global investment solutions (private equity funds of funds program, which includes primary funds, secondary and related co-investment activities, pooled funds and separately managed accounts).
Verventa Holdings Ltd (the acquirer), an investment holding company, does not carry on any business in India.
In the meantime, CCI has approved the acquisition of certain businesses of Shubhalakshmi Polyesters Limited and Shubhlaxmi Polytex Limited by Reliance Polyester Limited (Acquirer)
The proposed combination contemplates the acquisition by Reliance Polyester Limited (the Acquirer) of the trading businesses of Shubhalakshmi Polyesters Limited (SPL) and Shubhlaxmi Polytex Limited (SPTex) relating to the manufacture of polyester products/yarns as a going concern on the basis of a downward sale for a fixed consideration
The buyer does not currently carry out any commercial activity. However, after the closing of the proposed transaction, it will be mainly engaged in the production and supply of certain petrochemical products such as polyester staple fiber (PSF) and polyethylene terephthalate chips (Chips) as well as different types of yarns. polyester. The buyer belongs to the RIL group (which is one of the producers of polyester fibers and polyester yarns in India).
SPL is engaged in the production and supply of, among others, the following polyester products in India: (i) PSF; (ii) partially oriented yarn (POY); (iii) drawn textured yarn/polyester textured yarn (DTY or PTY); (iv) fully drawn yarn (FDY); and (e) Tokens. SPL also exports polyester products to over 35 countries including the United States of America, Canada, Australia, Ethiopia, Peru, Chile, Colombia, Korea, Vietnam and Russia. .
SPTex is engaged in the production and supply of DTY in India. SPTex also exports DTY to other countries including United States of America, Canada, Australia, Ethiopia, Peru, Chile, Colombia, Korea, Vietnam and Russia.