Aavas Financiers saw its shares surge on Monday following the news of CVC Capital Partners acquiring a controlling stake. Here’s what happened:
Key Highlights
- Share Price Surge: Aavas Financiers’ shares surged over 7%, reaching ₹1,745 as of 9:50 am.
- CVC Capital’s Acquisition: CVC Capital Partners announced an open offer to acquire an additional 26% stake in Aavas Financiers at ₹1,767 per share. This offer comes after CVC already acquired a 26.47% stake from existing shareholders, including Kedaara Capital and Partners Group, for ₹3,425 crore.
Details of the Deal
- Valuation: As of Friday, Aavas Financiers was valued at ₹13,020 crore, with its shares closing at ₹1,645 each.
- Cost of Open Offer: If all shareholders accept the open offer, CVC Capital will spend ₹3,664 crore to complete the acquisition.
- Share Sale Agreements: The transaction was triggered by a share sale agreement dated August 10, 2024. CVC will purchase 12,346,641 equity shares at ₹1,635 per share from Lake District Holdings Limited. Another agreement was signed with Partners Group ESCL, allowing CVC to buy 5,978,718 equity shares at the same price.
Market Response
- The market reacted positively to the news, with Aavas Financiers’ stock showing a significant increase as trading opened on Monday.
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Aavas Financiers