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    Yes Bank ARC deal: Carlyle, Advent to look at board seat

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    Yes Bank ARC deal: Carlyle, Advent to look at board seat

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    Yes Bank resolution is on the fast track with an asset reconstruction company (ARC) deal announcement and the next leg of private equity (PE) funding in its final stages. It is understood that Carlyle and Advent will be looking at a board seat as part of investments. Yes Bank has changed its Articles of Association (AoA) to make room for these appointments.

    Yes Bank resolution is on the fast track with an asset reconstruction company (ARC) deal announcement and the next leg of private equity (PE) funding in its final stages.
    It is understood that Carlyle and Advent will be looking at a board seat as part of the investment. Yes Bank has changed its Articles of Association (AoA) to make room for these appointments.
    The ARC deal with JC Flowers is a very big step in Yes Bank’s resolution plan, but it is incomplete. The second leg is much more important at this point because of the capital infusion that comes in from these large private equity players.
    There were two conditions for the PE players. Firstly, the assets had to be culled out and formed into an ARC or bad bank, and  second was provisions to be made for board nominations by the private equity players.
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    The important aspect to note here is that both Carlyle and Advent have been in talks to buy close to about 10 percent stake each in Yes Bank after the ARC deal and that could be in the final stages because, as part of the ARC deal announcement, one important aspect that Yes Bank as highlighted is that the board has changed the AoA; the first one is extremely important — that it makes room for the nomination of board members by the investors.
    That is a clear signal that a PE deal is imminent and for that, all the steps are being taken by the board of Yes Bank.
    Another important AoA change that they have made also gives or makes way for key executive appointments to the board which are not subject to retirement on rotation.
    Watch the accompanying video of CNBC-TV18’s Nisha Poddar for more details.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
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