This Article is From May 08, 2014

Netherlands-Based Bank Sells Stake in City Union Bank for Rs 147 Crore

Netherlands-Based Bank Sells Stake in City Union Bank for Rs 147 Crore
Mumbai:

A Netherlands-based bank on Thursday offloaded its entire worth Rs 147 crore in private sector lender City Union Bank through an open market transaction.

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N V, which held 2,34,37,500 shares, or a 4.32 per cent stake, in City Union Bank at the end of the March quarter, sold its entire holding in the bank.

The shares were offloaded at an average price of Rs 63 apiece, valuing the transaction at Rs 147.66 crore, as per information available with stock exchanges.

Meanwhile, Lavender Investments Ltd purchased 2.21 crore City Union Bank shares for Rs 140 crore.

Earlier this week, the Reserve Bank of India (RBI) allowed foreign institutional investors (FIIs) to purchase up to 35 per cent of the paid-up capital of the bank.

The apex bank said that it has removed City Union Bank from its ban list, allowing it to raise the FII investment limit up to 35 per cent of its paid-up capital as the foreign shareholding limit had gone below the threshold level.

Shares in City Union Bank, on Thursday, ended at Rs 64.45 apiece on the BSE, up 4.71 per cent from the previous close.