Tag: purchase

Sumitomo Mitsui Financial acquires 74.9% stake in Fullerton India

Banking & Finance

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Sumitomo Mitsui Financial Group, Inc (SMFG) has completed the purchase of 74.9 per cent stake in Fullerton India Credit Company Limited (Fullerton India) from Fullerton Financial Holdings Pte Ltd (FFH).

Post the purchase, Fullerton India has become a consolidated subsidiary of SMFG, which will eventually purchase 100 per cent of Fullerton India.

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The transaction marks the largest merger and acquisition of a private company in Indian financial services in the last two years and the largest ever inbound control acquisition by a Japanese enterprise entering the Indian market. The acquisition gives SMFG a pan-India presence across 25 states, 600 towns and 58,000-plus villages through 698 branches.

Fullerton India’s management team will continue to operate under the leadership of Shantanu Mitra, Managing Director and CEO.

Keep an eye on mergers

“We are delighted to welcome Fullerton India as a member of SMFG and our business partner in India. The foundation of a country’s development is not just the growth of its corporates but also that of its citizens — Fullerton India will play an important role to promote inclusive growth in line with our long-term strategy for India,” said Jun Ohta, President and Group CEO of SMFG.

Mitra said : “With the rapid deployment of vaccines and steady decline in Covid infection rates, we are witnessing a strong revival of economic activity in India. There is a steady pick-up in credit demand and healthy loan growth. In addition, portfolio quality is also demonstrating encouraging signs of improvement”.

As part of the transaction, Fullerton India’s board will be reconstituted to include Nobuyuki Kawabata, Rajeev Veeravalli Kannan, Hong Ping Yeo, Anindo Mukherjee, Shantanu Mitra, Shirish Moreshwar Apte, Milan Robert Shuster and Sudha Pillai.

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Sundaram Asset gets nod for purchase of asset management biz of Principal Asset Management

Banking & Finance

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Sundaram Asset Management Company, a wholly-owned a subsidiary of Sundaram Finance, has received regulatory approval for the purchase of the asset management businesses of Principal Asset Management.

Sundaram will acquire the schemes managed by Principal India and acquire the entire share capital of Principal Asset Management, Principal Trustee Company and Principal Retirement Advisors.

The deal was announced on January 28.

The transaction is subject to compliance with SEBI prescribed processes and fulfillment of mutually agreed conditions precedent to deal closure.

Exit load free window

As per regulatory requirements, there will be an ‘exit load free window’ for investors to redeem their investments, where such exit load is applicable.

Post deal closure, the schemes currently managed by Principal India and Sundaram will either be merged or renamed as Sundaram schemes in their respective categories.

Sunil Subramaniam, Managing Director, Sundaram Asset Management Company said the entire distribution franchise of Principal will be absorbed for minimal disruption to their commercial terms.

The existence of the same back-office service provider is expected to smoothen the transition for existing customers and distributors, he added.

Harsha Viji, Executive Vice-Chairman, Sundaram Finance said the combined business of both the entities will achieve an aspirational landmark of ₹50,000 crore.

The focus for us will be on delivering a better experience to investors and distribution partners, he said.

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RBL Bank MD and CEO sells 14.4 lakh shares of lender

Banking & Finance

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Private sector lender RBL Bank said its Managing Director and CEO, Vishwavir Ahuja, has sold 14.4 lakh shares of the lender between February 19 and 25 for about ₹35.07 crore..

In a regulatory filing, the bank said this transaction was “as per the pre-clearance taken” by Ahuja.

RBL Bank MD sells 18.92 lakh shares for ₹38.52 crore

According to the extract of intimation by Ahuja to the bank’s Compliance Officer, the sale of shares was to finance the purchase of a family house.

“The sale proceeds shall be utilised primarily to purchase and build a family home and take care of other family commitments. This is a very essential and much delayed imperative for the family’s well-being,” Ahuja said in the intimation, which was included in the bank’s regulatory filing.

Vishwavir Ahuja re-appointed as RBL Bank chief

“The sale represents approximately 17 per cent of my and my family’s total holdings and we will continue to retain approximately 70 lakh shares of RBL Bank, almost 70 per cent of my peak holdings since joining the Bank in 2010,” Ahuja further said, adding that the sale of shares is purely for personal and family reasons.

Strong growth prospects

The completion of the property transaction may require him to sell another three per cent to four per cent of his holdings over the next few months, he said.

Ahuja reiterated his commitment to RBL Bank and said the lender has strong growth prospects over the next several years, “especially in areas in which we have significant market share and have chosen to scale up.”

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