Emirates NBD to Acquire Majority Stake in RBL Bank
In a major decision, Emirates NBD Bank (ENBD), located in Dubai, has consented to purchase a controlling share in RBL Bank via a primary investment of roughly $3 billion (about Rs 26,850 crore).
The suggested investment will occur through a preferential issue of up to 60 percent and will be contingent upon regulatory approvals and other standard closing conditions.
In relation to this deal, ENBD will also present a compulsory open offer to acquire as much as 26 percent ownership from the public shareholders of RBL Bank, as per Sebi's Takeover Regulations, RBL Bank announces.
ENBD is 56 percent owned by the Dubai Government through the Investment Corporation of Dubai and Dubai Holding Group.
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The Board of Directors of ENBD and RBL Bank have also endorsed the merger of the Indian branches of ENBD with RBL Bank in accordance with RBI regulations. Completion is anticipated to occur following the execution of the preferential issuance into RBL Bank.
RBL Bank states, “This investment demonstrates ENBD’s trust in India's rapidly expanding financial sector, emphasizing India's strategic relevance in the India-Middle East-Europe Economic Corridor and highlighting a significant phase in the economic collaboration between India and the UAE.”
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“The transaction brings together ENBD’s strong capital base and regional franchise with RBL Bank’s established presence and extensive distribution across India. The infusion will significantly strengthen RBL Bank’s balance sheet, enhance its Tier-1 capital ratio, and provide long-term growth capital, further enabling the Bank to deepen its deposit franchise and expand its footprint through calibrated branch network expansion,” RBL Bank said.
Shayne Nelson, Group CEO of Emirates NBD says, “Our investment in RBL Bank is a testament to our confidence in India’s vibrant and expanding economy. This strategic alignment brings together RBL Bank’s growing domestic franchise with Emirates NBD’s regional reach and financial expertise, creating a unique platform for growth and innovation.”
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“An enhanced presence in India for ENBD, through a well-established business like RBL Bank, would further complement ENBD’s service to customers operating throughout the MENATSA region. We envisage to support Indian businesses, trade, projects, and other opportunities throughout the region leveraging our network,” Nelson adds.