Union Bank of India has invited counterbids under the Swiss Challenge method to sell 2% stake in Reliance Asset Reconstruction Co Ltd, the bank said in a notice on its website.
Under the Swiss Challenge method, interested bidders can bid at a price taking into account the highest bid in hand at the previous round of bidding.
Union Bank of India has received bids from 2 bidders pursuant to earlier request for proposal. However, the process could not be materialised.
On November 22, one of the initial bidders upped their offer, making it 9.00 rupees per share for the 2% stake, according to the bank.
The deadline for submitting proposals is February 2.
Resurgent India Ltd has been appointed as the transaction advisor for the proposed transaction.
In August 2021, Union Bank of India had invited bids to sell up to 11.50% stake, or 11.50 mln shares of Reliance Asset Reconstruction Co Ltd.
On August 22, Indian Bank issued a Swiss Challenge invitation for counteroffers to purchase 2 million shares, or 2% of Reliance Asset Reconstruction Co.
Through a shareholders' agreement, Reliance Asset Reconstruction Co., which has a 49% shareholding, is the sponsor and also holds the managerial control.
According to the bank, interested bidders must have a minimum net worth of 200 million rupees as of March 31, 2022, in order to be included in the bid pack.
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