Resignations not to affect IFCI strategic sale: CEO
The process of inducting a strategic partner in IFCI would not be affected by resignations of two top executives citing conflict of interest in the deal to sell 26 per cent stake in the institution.
By PTI |
NEW DELHI: The process of inducting a strategic partner in IFCI would not be affected by resignations of two top executives citing conflict of interest in the deal to sell 26 per cent stake in the institution.
"The resignations would absolutely not affect the process," IFCI CEO and Managing Director Atul Rai told agencies.
He said as per schedule names of entities shortlisted from 10 Expressions of Interest would be announced by September 25.
Last week, IFCI Chairman N Balasubramanian put in his papers before the bids were opened on Saturday citing his conflicting role as adviser to Standard Chartered Bank, which is one of the parties interested in the stake.
Subsequently, IFCI Director Vinayak Chatterjee resigned from the board over his association with the bidders. Chatterjee is the chairman of Feedback Ventures in which HDFC and IDFC hold shares. Both HDFC and IDFC have evinced interest in picking up 26 per cent stake in the financial institution.
While IDFC is a standalone suitor, HDFC has applied in consortium with W L Ross, StanChart and Goldman Sachs.
The IFCI board is scheduled to meet on September 20 to ratify resignations as well as take up other issues. The board meeting will be followed by a shareholders' meet the next day.
The company would float Request For Proposal (RFP) by mid-October. The shortlisted entities would be asked to undertake due diligence and submit bids indicating the price they would be willing to pay for the stake.
Based on the technical and financial bids, the board would finalise the name of the strategic partner. The stake sale is likely to be completed by January next year.
"The resignations would absolutely not affect the process," IFCI CEO and Managing Director Atul Rai told agencies.
He said as per schedule names of entities shortlisted from 10 Expressions of Interest would be announced by September 25.
Last week, IFCI Chairman N Balasubramanian put in his papers before the bids were opened on Saturday citing his conflicting role as adviser to Standard Chartered Bank, which is one of the parties interested in the stake.
Subsequently, IFCI Director Vinayak Chatterjee resigned from the board over his association with the bidders. Chatterjee is the chairman of Feedback Ventures in which HDFC and IDFC hold shares. Both HDFC and IDFC have evinced interest in picking up 26 per cent stake in the financial institution.
While IDFC is a standalone suitor, HDFC has applied in consortium with W L Ross, StanChart and Goldman Sachs.
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The IFCI board is scheduled to meet on September 20 to ratify resignations as well as take up other issues. The board meeting will be followed by a shareholders' meet the next day.
The company would float Request For Proposal (RFP) by mid-October. The shortlisted entities would be asked to undertake due diligence and submit bids indicating the price they would be willing to pay for the stake.
Based on the technical and financial bids, the board would finalise the name of the strategic partner. The stake sale is likely to be completed by January next year.
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