HDFC Bank to divest entire stake in education subsidiary
HDFC Bank has disclosed its intention to sell its entire stake in HDFC Education and Development Services Private Ltd. The announcement was made through a regulatory filing, indicating that the sale will be conducted using the Swiss challenge method. As of March 30, 2024, the bank has initiated a binding term sheet with a potential buyer who will set the base bid for other interested parties.
Swiss challenge method to determine final buyer
The final buyer of HDFC Education will be determined through the Swiss challenge process. This method invites counter offers from other interested parties based on the initial offer. Upon completion of this process, HDFC Bank and the successful bidder will formalize their agreement for the transaction. Currently, HDFC Education provides services to three educational institutions.
HDFC Bank's decision aimed at maintaining transparency
The decision to divest its stake in HDFC Education was taken by HDFC Bank after careful consideration. The bank aims to maintain transparency in the proposed divestment process. "Upon completion of the Swiss challenge process, HDFC Bank will proceed with selecting the purchaser," according to the bank's regulatory filing. This move is part of a broader strategy to streamline operations and focus on core banking services.
