Avenue India Resurgence Joins As Sponsor Shareholder Of Arcil
Asset Reconstruction Company (India) Ltd. said Avenue India Resurgence Pte has joined as its new sponsor shareholder.
Avenue India Resurgence, a part of New York headquartered Avenue Capital Group became the shareholder following completion of the secondary purchase from a few existing shareholders of Arcil.
The company, however, did not disclose the name of the existing shareholders who sold their stakes to Avenue India.
"It is expected that some further shares might be acquired by Avenue, likely to close shortly with a couple of other shareholders," Arcil said in a release.
The country's oldest asset reconstruction company Arcil in last November announced its plans to sell 27 percent stake to the U.S.-based distressed asset fund Avenue Capital, making it a single largest shareholder.
The transaction was structured as a secondary purchase, whereby Avenue would acquire the shareholding of certain existing shareholders.
The sellers included IDFC Bank (8.37 percent), South Africa's Firstrand Bank (4.11 percent), government of Singapore's Lathe Investments (9.9 percent), Ashmore Capital (1.37 percent), Karur Vyasya Bank (1.96 percent) and Barclays Bank (1.5 percent).
The company said a representative of Avenue is expected to join the board of Arcil post regulatory approvals.
Earlier this week, IDFC First Bank in a exchange filing said it had sold its entire 8.37 percent of stake held in Arcil.
Arcil had earlier said that its other investors namely State Bank holding close to 20 percent, IDBI Bank 19.18 percent, ICICI Bank 13.26 percent and PNB 10.01 percent will continue to hold their stakes in the company.