InvestorQ : Can you tell me about the letter written by PNB to PNB Housing?
sarah Leo made post

Can you tell me about the letter written by PNB to PNB Housing?

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Rashi Mehra answered.
3 weeks ago
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In fact, on 03 July, PNB had written to PNB Housing asking them to abide by the SEBI suggestion for an independent valuation. This letter can make the difference as PNB still holds over 32% stake and also owns the PNB brand, which the HFC is leveraging. After the letter, PNB Housing may have no choice but to fall in line, whatever be the SAT ruling.

The deal may still be good and the best option, but clearly the pricing has to be better. As per global best practices, Carlyle should have offered a price at least equal to book value plus control premium. That was not done. A higher price would be fair to both the parties. Now that PNB wants a rational middle path, PNB Housing will follow suit.
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