Sundaram Finance to acquire stakes of BNP Paribas held in 2 JVs

Sundaram Finance (SFL) has entered into an agreement with its partner BNP Paribas for acquiring stakes held by the latter in their two joint venture companies called Sundaram BNP Paribas Home Finance Limited and Sundaram BNP Paribas Fund Services for a total consideration of around Rs. 1,000 crore. However, this is subject to necessary regulatory approvals.

SFL would acquire a 49.9 per cent stake of BNP Paribas held in Sundaram BNP Paribas Home Finance would be acquired for about Rs. 999.66 crore. In addition to this, SFL would acquire a 49 per cent equity stake held by BNP Paribas Securities Services in Sundaram BNP Paribas Fund Services would be acquired for Rs. 1.50 crore.

These stake sales are in line with BNP Paribas Group’s strategy to exit the retail housing finance business.

The SFL’s management believes that this move would help to further strengthen the company’s presence in the retail financial services segment. Post these proposed acquisitions, the two joint ventures would become a wholly-owned subsidiary of Sundaram Finance.

In today’s trading session, the stock of Sundaram Finance was trading in positive terrain. The stock which opened at Rs. 1,560 and surged up nearly 3.6 per cent to an intra-day high of Rs. 1,588 apiece. At 14.53 hours the stock was trading at Rs. 1578.5, up by 3 per cent.