The Competition Commission of India (CCI) has given its nod for CA Basque Investments, part of the Carlyle Group, and Verventa Holdings, an affiliate of funds managed by Advent, to acquire up to 10 per cent each of the total paid-up share capital of private lender YES Bank.
The 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 allowed to pick up to 10 per cent stake).
It may be recalled that Yes Bank Board had in July this year decided to issue over 369.61 crore equity shares and 256.75 crore warrants. These securities will be issued on a preferential basis for 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 fully 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 entity and with no business activities in India.
The Carlyle Group Inc., is a global investment firm which manages funds that invest globally across three investment disciplines: (a) global private equity (including corporate private equity, real estate, and natural resources funds); (b) global credit (including liquid credit, illiquid credit, and real assets credit); and (c) global investment solutions (private equity fund of funds program, which include primary fund, secondary and related co-investment activities, commingled funds and separately managed accounts).
Verventa Holdings Ltd (Acquirer), an investment holding company, does not have any operations in India.
Meanwhile, 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 acquisition by the Reliance Polyester Limited (Acquirer) of the business undertakings of Shubhalakshmi Polyesters Limited (SPL) and Shubhlaxmi Polytex Limited (SPTex) about the manufacture of polyester products/yarn as a going concern on a slump sale basis for a lumpsum consideration
The acquirer is not engaged in any business activity at present. However, post-closing of the proposed transaction, it will primarily be engaged in producing and supplying certain petrochemical products such as polyester staple fibre (PSF), and polyethylene terephthalate chips (Chips) as well as different types of polyester yarns. The acquirer belongs to the RIL group (which is one of the producers of polyester fibre and polyester yarns in India).
SPL is engaged in the production and supply of, among other things, 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) Chips. 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 the United States of America, Canada, Australia, Ethiopia, Peru, Chile, Colombia, Korea, Vietnam and Russia