BNP Paribas, France’s largest bank, will acquire 50% stake in the equipment financing business along with insurance broking (which is being spun off into a separate company) of Kolkata-based SREI Infrastructure Finance for Rs 775 crore.
The deal, the first of its kind in the country’s booming infrastructure sector, will help SREI to unlock shareholder value.SREI is into project financing in addition to equipment financing, the main money spinner. It has Rs 5,000 crore of assets under its management.
Both the companies today signed an agreement to this effect at a press conference in the city. Kotak Investment Banking advised SREI on the transaction while Ambit Corporate Finance was BNP Paribas’ advisor.
BNP Paribas Lease will be the investment vehicle for the foreign bank into the company in which SREI will also chip in Rs 25 crore. SREI will get Rs 375 crore for transferring the infrastructure equipment and insurance broking businesses into a separate company.
Read more in The Business Standard article.
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