3 weeks ago
Bank of America to Acquire 49.9% Stake in Jio Credit
Bank of America is buying almost half of a company called Jio Credit.
The price is a huge amount of money: 18,268 crore rupees.
This deal is being done with special tickets called warrants.
A warrant gives the buyer the right to get shares of the company later.
Bank of America will pay one-fourth of the money right away when it subscribes to the warrants.
It will pay the rest when it turns the warrants into shares.
After that, Bank of America will own 49.9 out of every 100 shares of Jio Credit.
That means the company still has other owners who hold the rest.
Bank of America is acquiring a 49.9% stake in Jio Credit for Rs 18,268 crore.
The deal is structured through warrants, with the equity held by NB Holdings, USA after conversion.
Twenty-five percent of the consideration must be paid at the time of warrant subscription.
The balance of the consideration is payable at the time the warrants are converted.
Post conversion, NB Holdings, USA will hold 49.90% of Jio Credit's paid-up equity share capital.
- Who
- Bank of America, through its entity NB Holdings, USA, and Jio Credit.
- What
- Acquisition of a 49.9% equity stake in Jio Credit for Rs 18,268 crore via warrants.
- Where
- Not specified in the article.
- When
- Not specified in the article.
- Why
- Not specified in the article.
Key facts
- Acquirer
- Bank of America (via NB Holdings, USA)
- Target Company
- Jio Credit
- Stake Acquired
- 49.9% (49.90% of paid-up equity share capital)
- Deal Value
- Rs 18,268 crore
- Payment Structure
- 25% at warrant subscription; balance at conversion
- Instrument
- Warrants convertible into equity shares
Sources
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