Home / Business and Economy / Emirates NBD eyes RBL Bank control: Key vote set
Emirates NBD eyes RBL Bank control: Key vote set
11 Apr
Summary
- Shareholders to vote on May 4 for Emirates NBD's RBL Bank investment changes.
- Emirates NBD plans to buy RBL Bank shares at Rs 280 each.
- RBI approved Emirates NBD's acquisition of up to 74% of RBL Bank.
RBL Bank is convening an extraordinary general meeting on May 4 to obtain shareholder consent for modifications related to Emirates NBD Bank's investment. These changes encompass revised board nomination rights and amendments to the bank's articles of association, advancing Emirates NBD's proposed acquisition of a controlling stake.
The investment agreement specifies that Emirates NBD will subscribe to new RBL Bank shares at Rs 280 per equity share. This preferential allotment could involve up to 95.91 crore shares, representing 60% of the post-issue equity capital, subject to adjustments.
An amendment agreement, approved on April 11, aligns the original investment pact with the Reserve Bank of India's conditions. The RBI, via a letter dated April 1, has granted approval for Emirates NBD to acquire up to 74% of RBL Bank's paid-up share capital.
This transaction is poised to be a major foreign investment in an Indian private lender, granting Emirates NBD management control upon completion. The deal is anticipated to close in the first quarter of FY27, pending final approvals.
Board nomination rights for Emirates NBD will vary based on its shareholding. Holding over 50% allows nomination of all non-independent directors, while stakes between 30% and 50% permit the nomination of up to three non-executive directors.
Shareholders will also vote on the fixed remuneration for Chandan Sinha as non-executive part-time chairman, as sanctioned by the RBI.
