IndusInd Bank calls off deal to acquire IL&FS Securities Services due to non-fulfilment of conditions
'The share purchase agreement (SPA) stands terminated as all the conditions precedent were not satisfied within the stipulated time period,' IndusInd Bank said
New Delhi: Private sector lender IndusInd Bank on Tuesday said its agreement to fully acquire IL&FS Securities Services Ltd (ISSL) has been terminated due to non-fulfillment of conditions.
In June this year, IndusInd Bank had signed a share purchase agreement with Infrastructure Leasing and Financial Services Ltd (IL&FS) to acquire its securities services subsidiary.
"The share purchase agreement (SPA) stands terminated as all the conditions precedent were not satisfied within the stipulated time period," IndusInd Bank said in a regulatory filing.
ISSL, incorporated in 2007, is a capital market intermediary for professional clearing, depository and custodial services and caters to both retail and institutional clients including over 1,000 brokers, FPIs and FIIs.
"We understand that the newly constructed board of directors of IL&FS has decided to initiate a new process for the sale of its equity interests in ISSL," IndusInd Bank added.
Meanwhile, in a bid to monetise its assets, crisis-ridden IL&FS on Monday initiated the process for divesting its stake in IL&FS Securities Services and ISSL Settlement & Transaction Services.
"As stated in the said Report, it is the objective of the board to achieve, by one or more plan(s), the resolution of the IL&FS group through certain measures, including asset divestments," the debt-ridden company said in a statement on Monday.
The release further said that in order to ascertain market interest, and to examine the feasibility of maximisation of value in an orderly and transparent manner, the board, while continuing to evaluate all options, on Monday initiated the process of exploring the sale of an asset engaged in the securities services business.
Shares of IndusInd Bank were trading 1.36 percent lower at Rs 1,471.35 apiece on BSE.
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