The Swiss Challenge process is conducted to invite challenger bids for the sale of stressed assets.
Yes Bank did not receive any challenger bids against the base bid of JC Flowers for the NPA portfolio of Rs 48,000 crore.
According to an announcement made on September 20, the board of Yes Bank has approved the sale of stressed debt of $6 billion (approximately Rs 48,000 crore) to private equity firm JC Flowers, as no challenges were met.
As a result, JC Flowers ARC was declared the winner.
“The Swiss Challenge process is now over and the Bank has not received any Challenger bids for the Aadhaar bid, the Board of Directors of the Bank in its meeting held on 20th September, 2022 has approved the announcement of JC Flowers ARC. Swiss Winner of the Challenge Process,” the bank said in a filing to the stock exchanges.
Apart from the announcement of the winner, the board also approved the investment required by the bank for acquisition of up to 19.99 per cent equity stake in JC Flowers ARC. The acquisition will be done in single or multiple phases. This will be subject to necessary regulatory approvals.