Axis Bank mutually terminates deal to sell entire stake in UK unit

Private lender Axis Bank said on Thursday it has mutually terminated the deal to sell its 100% stake in its subsidiary – Axis Bank UK Limited – to OpenPayd Holdings Ltd. The bank will now start the liquidation process of its subsidiary in Great Britain.

In a regulatory filing with the BSE, the private lender said: “We would like to inform you that both parties have mutually decided not to proceed with the aforementioned transaction and have accordingly terminated the aforementioned share purchase agreement. The bank will now initiate the liquidation process of Axis Bank UK Limited.”

The bank had previously informed the exchanges of entering into a share purchase agreement with OpenPayd Holdings Limited, for the sale of a 100% stake in Axis Bank UK Limited.

In July last year, the bank had decided to end the activities of the British subsidiary after reviewing its international strategy.

Analysts had said the lender had a clear goal of focusing on the Indian banking market to reach its full potential.

At the end of June, the bank had a foreign loan of 389.28 billion, a contraction of 457.50 billion in the March quarter.

Axis acquired Citigroup Inc’s local consumer banking business for $1.6 billion in March to expand its credit card and retail operations in the country.

The bank was expected to complete the transaction on September 30 last year. For the transaction, the bank had received the delivery value (book value of the bank on the date of delivery) plus a fixed premium of $5.5 million.

On Thursday, scrip fell 1.17% to close at 721.75 on the BSE.

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