Yes Bank’s Board Credit Committee is meeting on Wednesday to consider a joint venture partner for an asset reconstruction company, sources told CNBC-TV18.
CNBC-TV18 was the first to report that US-based private equity firm JC Flowers had emerged as the highest bidder for the private lender's proposed ARC. Foreign private equity firms like Cerberus Capital and Apollo Global were also in the fray to partner with Yes Bank for its ARC foray.
Yes Bank shares, however, gave up initial gains amid an overall slump in the market. The stock dropped as much as 1.3 percent to Rs 13.2 apiece on BSE, having risen to as high as Rs 13.6 apiece earlier in the day.
Yes Bank had gained 5.8 percent in the past three sessions. The stock has been trading higher than its five-, 20-, 50-, 100- and 200-day moving averages.
Also read: Yes Bank shortlists JC Flowers as its ARC partner; deal to help clean-up bank's balance sheet
Yes Bank will hold a Swiss Challenge auction to invite counter bids with JC Flowers' offer as anchor bid post-board nod, according to sources. The bank will also seek RBI's nod for its 20 percent stake in the ARC after the Swiss auction and 80 percent stake to be held by the foreign partner.
Yes Bank is looking to transfer approximately Rs 51,000 crore of loans to an ARC to completely clean up its books. JC Flowers' deal had valued Yes Bank's NPA portfolio at Rs 12,100 crore, higher than other suitors (net of recoveries since evaluation).
CNBC-TV18 is awaiting Yes Bank’s response to the story.