M&A

M&A

Cerberus Capital Mgmt is the top bidder for Yes Bank's ARC

Mint  

Cerberus Capital Management has emerged as the top bidder to acquire around INR 55,000 crore of bad loans from Yes Bank Ltd, with plans to transfer the assets to a jointly sponsored asset reconstruction company (ARC). US-based Cerberus, one of the world's largest distressed assets investors, is also likely to acquire a controlling stake in Blackstone's International Asset Reconstruction Co. (IARC), which will be the investment vehicle for the transaction. IARC is one of India's oldest ARCs, founded in 2002 by Arun Duggal, former India CEO of Bank of America, and State Bank of India veteran MS Verma. In 2018, PE firm Blackstone bought a 51% stake in IARC. HDFC Bank, ICICI Bank and Tata Capital also own stakes in the firm. The development comes after Cerberus shelved its plan to apply for a licence from the Reserve Bank of India for acquiring a majority stake in an ARC Yes Bank wanted to set up. JC Flowers and Co has also submitted a competing binding bid to buy a majority stake in Yes Bank's proposed ARC.