Seven bidders in race for $2.3 billion PNB Housing Finance buyout

Seven bidders have submitted nonbinding offers to acquire PNBHousing Finance in a deal estimated at around $2.3 billion, people directly aware of the matter said. The list of suitors, who submitted initial offers on Monday, included Godrej, Bandhan Bank, Dewan Housing Finance and a consortium led by GIC of Singapore and Blackstone. The bids, which are likely to be opened later this week, may have come at a 10-12% premium to prevailing share price. PNB Housing shares have lost some momentum in the past week tracking weak market sentiments. The counter closed at Rs 1,301 apiece on Tuesday, giving it a market capitalisation of more than Rs 21,000 crore ($3 billion). The country’s second-largest state lender PNB and private equity giant Carlyle Group almost equally own 66% in PNB Housing Finance. The offers are expected to value the housing mortgage lender closer to Rs 24,000 crore (or $3.5 billion). The control transaction would also trigger a mandatory open offer to minority shareholders. The deal is seen to be crucial for PNB’s turnaround strategy as it expects the share sale in the housing finance company to fetch between Rs 7,000-8,000 crore (or $1.2 billion). Sources said some of the bidders have placed all-cash offers.