Wednesday, May 9, 2007

Paribas takes 49.9% stake in Sundaram Home

French banking group BNP Paribas SA will acquire 49.9% stake in Sundaram Home Finance (SHFL) for Rs 196.98 crore - a move which will give the foreign firm an increasing presence in the booming housing loans market in India.

The French firm would pay around Rs 146.98 crore to SHFL, while Rs 50 crore would be invested directly in the company, resulting in a 49.90% stake for UCB in the enhanced paid-up equity capital of SHFL, Sundaram Finance said in a release issued to the Bombay Stock Exchange today.

On completion of the transactions, Sundaram Finance would own the remaining 50.10% of the enhanced paid-up equity capital.BNP Paribas already owns 49.9% stake in Sundaram Finance's asset management company.

The French banking major became the largest shareholder of south-based Geojit Financial Services in March. BNP Paribas also has a stake in SBI Life, which is jointly promoted by State Bank of India and Cardiff SA, the insurance arm of BNP Paribas.

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