HSBC may have to `pay more'' for 14.7 per cent in UTI Bank
17 December 2003
New Delhi: The HSBC group may have to pay a higher price than the Rs 306-crore to CDC Financial Services (Mauritius) Ltd (CDC-FSL) and the South Asia Regional Fund for buying out their combined 14.7 per cent stake in the UTI Bank in case they revise their open offer price to a level higher than the acquisition price of Rs 90 per share.
A clause to this effect has been included in HSBC's application to the Foreign Investment Promotion Board to seek clearance for the transaction.
This is because the buy-out agreement includes such a condition and the transaction has been completed at a price of Rs 90 per share. "In case HSBC Asia Pacific Holdings (UK) Ltd acquires shares in the open offer at a price higher than Rs 90 per share of UTI Bank, such higher price would be payable to CDC-FSL and SARF for the shares being acquired under the agreement and as per the options," the application has said.