Indiabulls Housing Finance, a private non deposit taking finance company in India, plans to acquire a 39.76% stake in British lender OakNorth Bank for $100m.
The investment will make Indiabulls the largest shareholder in OakNorth Bank, which specialises in lending to small businesses.
The deal will see Indiabulls promoter and chairman Sameer Gehlaut making a personal investment of up to 10% in the UK bank at the same valuation, subject to regulatory nod.
"Investment in OakNorth Bank will benefit the company with a global platform for building its track record of a deposit franchise in a highly regulated market," Indiabulls said.
The investment has already been identified and approved by the strategic investment committee for liability franchise development.
The deal has also secured regulatory approvals in India and UK, including nod from the RBI, India’s National Housing Bank and the Prudential Regulation Authority (PRA) of the Bank of England and Financial Conduct Authority (FCA) of the UK.
"The regulatory approvals for the investment, which were received after rigorous due diligence, is the first ever to be given to an Indian corporate to acquire a large stake in a foreign bank," Indiabulls added.