REL Board approves investment by Customers Bancorp Inc.

 
MUMBAI, India - June 27, 2013 - PRLog -- Mumbai, June 26, 2013:

Customers Bancorp Inc., (“CUBI”), a full-service bank headquartered in the US, regulated by the Federal Reserve, and trading on the NASDAQ, has agreed to invest $ 51 Million in Religare Enterprises Limited (“REL” or the “Company”) through a combination of primary and secondary market investment as per the following details:

o   CUBI shall make a secondary purchase of Indian Rupee equivalent of US$ 22 Million of equity shares of the Company from the promoters. The Promoters are selling the shares as part of their 22% divestment to bring down their shareholding to 49% to qualify Religare Enterprises Limited to setup NOFHC as per RBI Guidelines for Licensing of New Banks in the Private Sector issued on 22 Feb 2013. This transaction would be done as per applicable law at prevailing market price on date of purchase.

o   In addition, CUBI shall make an investment for the Indian Rupee equivalent of US$ 28 Million in Share Warrants issued by the Company on preferential allotment basis, as per SEBI floor price and as per applicable law. Warrants would be convertible into equity shares in maximum of 18 months.

o   CUBI will also subscribe to common equity shares for the Indian Rupee equivalent of US$ 1 M on a preferential allotment basis, as per SEBI floor price and as per applicable law.

REL and CUBI management teams have negotiated a term sheet based on which definitive documents are to be completed. The CUBI Board has already given its approval to proceed with the transaction.

REL and CUBI management teams will also enter into a business alliance agreement to find opportunities to service REL’s customers across businesses, as well as potential customers CUBI of Indian origin in the US for their India investment needs.

Mr. Sunil Godhwani, Chairman and Managing Director, Religare Enterprises Limited,commented: We are delighted to have Customers Bancorp Inc. as an investor at REL.CUBI management team expertise in global banking will be extremely supportive in our banking foray. We are confident that the proposed association will further strengthen REL’s endeavor to create a distinctive and diversified financial services conglomerate that believes in the Indian market’s long term growth potential.”

Mr. Jay Sidhu, Chairman and Chief Executive Officer, Customers Bancorp Inc., commented: “We are very excited about working with a high quality company like Religare Enterprises. We think there are mutually beneficial opportunities for both organizations to explore. Going forward, our management team’s extensive banking experience will be available to Religare in its banking foray. We agreed to invest after doing research on investment opportunities in the financial services industry in India with the help of Dinodia Capital Advisors. We feel comfortable with the growth prospects of Religare and all its subsidiaries and affiliates, and look forward to a long term relationship with the company.”

About REL - www.religare.com

Religare Enterprises Limited (REL) is one of India’s leading diversified financial services groups.  REL offers an integrated suite of financial services including asset management, life and health insurance, lending, broking, investment banking, and wealth management.  Religare Enterprises is headquartered in New Delhi and is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India. Religare is also building an Asia & emerging markets focused Institutional equities & Investment Banking business and a multi-boutique global asset management platform to tap the broader opportunities offered by the most promising emerging markets around the world.As of March 31, 2013, REL served over 1.3 million clients from over 1,750 locations with over 5,300 employees in India and abroad.

About Customers Bancorp Inc.-www.customersbank.com

Customers Bancorp, Inc. is a bank holding company for Customers Bank based in Wyomissing, Pennsylvania. Customers Bank is a state-chartered, full-service bank headquartered in Phoenixville, Pennsylvania. Customers Bank is a member of the Federal Reserve System and is insured by the Federal Deposit Insurance Corporation (“FDIC”). With assets of approximately $3.5 billion at March 31, 2013, Customers Bank provides a full range of banking services to small and medium-sized businesses, professionals, individuals and families through office locations in Pennsylvania, New York, New Jersey, Rhode Island and Massachusetts. Customers Bancorp, Inc. has one pending acquisition, CMS Bancorp, Inc. in White Plains, NY. Customers Bank is focused on serving its targeted markets with a growth strategy that includes strategically placed branches throughout its market area and continually expanding its portfolio of loans to small businesses, multi-family projects, mortgage companies and consumers.
End
Source: » Follow
Email:***@fortunapr.in Email Verified
Tags:Broking, Health Insurance, Wealth Management, Lending, Life Insurance
Industry:Reports
Location:Mumbai - Maharashtra - India
Account Email Address Verified     Account Phone Number Verified     Disclaimer     Report Abuse
Fortuna PR PRs
Trending News
Most Viewed
Top Daily News



Like PRLog?
9K2K1K
Click to Share