Piramal Capital: The sale, finalised last week, marks a recovery of 17% for Piramal. The pool consists of accounts acquired along with Dewan Housing Finance Limited (DHFL) and Piramal s own loan book.
The non-banking finance company had called for bids under a cash-security receipt structure, based on an existing offer. Omkara Asset Reconstruction Company provided a binding offer, setting the reserve price for the auction.
Ares Ssg: The deal has attracted attention as one of the largest transactions in distressed assets, because of debt of marquee real estate projects on sale.
At the onset, Piramal summarized the reasons why the bid by Piramal Capital Housing & Finance Limited (PCHFL) for DHFL is the strongest, in his view. As an Indian entity, our backstop offer to DHFL lenders, in case the standalone sale process does not gain traction, is fully implementable and comfortably within the ambit of current ownership rules on insurance, and the corresponding IRDA guidelines. As it currently stands, the competing foreign financial investor’s resolution plan is unimplementable till such time that a credible, regulatorily acceptable alternate buyer for the insurance business emerges, wrote Piramal, referring to the competing bid by US-based investment firm Oaktree Capital.