As SEBI asks for an Independent valuation of the Rs 4000 cr PNB Housing-Carlye deal putting the deal on hold. Veteran investor Samir Arora backs the shareholder rights and calls out the concerns in corporate governance in the mega deal.
Samir Arora tweeted saying " Control transaction at a discount to market price where the acquirer pays 75% of the amount after 18 months - now that is a deal and shows how PE investors help worsen corporate governance if no oversight." He goes on to make the case for the share valuation to be assessed as Arora says " "A preferential issue of shares and warrants" and a "preferential issue of shares and warrants that also gives controlling interest" are not one and the same thing."
PNB Housing-Carlye deal is set to offer shares to the 'acquirer' Carlyle for Rs 390/share vs the current market-price of over Rs 700/share or the share price of Rs 500/share at the time the deal was announced.