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Cerberus partners with ARCION for YES Bank’s NPA

July 26, 2022

Cerberus partners with ARCION for YES Bank’s NPA
Cerberus Capital has struck a deal with an asset reconstruction company in the bitterly fought chase to grab ₹48,000 crore stressed assets of Yes Bank.

Despite a higher offer, Cerberus lost out as it does not own an ARC- unlike JC Flowers, which operates an ARC. In order to place itself on an equal footing, Cerberus has roped in ARCION Revitalization, an ARC joint venture between Apollo Global Management and ICICI Bank, to submit a joint bid, said people aware of the development.

Avenue Capital-backed Asset Reconstruction Company of India (Arcil) also submitted an expression of interest separately. JC Flowers ARC, as the anchor bidder, will have the right to match counterbids.

Yes Bank, meanwhile, aims to complete the sale process by the end of this quarter. The lender had received binding offers from JC Flowers ARC and Cerberus in mid-May following which the bank declared JC Flowers ARC as the highest bidder.

“Yes Bank has declared H1 bidder as it owned an operating ARC, although Cerberus submitted a slightly higher offer than JC Flowers ARC,” said one of the two persons cited above. “It was, therefore, imperative for Cerberus to tie up with an ARC,” the same person said.

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