GE Money finds no takers for personal loans, mortgage biz

GE Money India is learnt to have found no takers for its wholly owned personal loans and mortgages portfolios with the interested parties quoting nearly half of the company's expectation. The bidders say this could eventually lead to the proposed divestment plan being scrapped.

The bidders have recently informed Morgan Stanley, advisor to GE Money India that their valuations are in the range of $150-200 million. GE Money had pegged the base price of these two businesses at $400 million - the amount it had invested in them - and was looking for a premium over this.

Code-named 'Project Intrepid', GE has put GE Money Housing Finance (excluding home loans distributed through a JV with Wizard home loans) and the personal loans business known as GE Money Financial Services on the block four months ago.Nearly 40 companies showed initial interest but a few firms including Tata Capital, Future Group, Indiabulls, the Aditya Birla Group and Carlyle carried out the due diligence.

Read more in The Economic Times article.

LIC wants to dilute stake in IFCI

State-owned Life Insurance Corporation of India (LIC) wants to dilute its holding in IFCI even as the Delhi-headquartered non-banking finance company is awaiting cues from the government on its future strategy.


Sources said LIC has approached the IFCI management to lower its holding from 11.39 per cent to 8.39 per cent, the level it was at prior to conversion of debt into equity earlier this year.On its part, IFCI is seeking a legal opinion on how to go about the process.The sources also said the IFCI management is yet to hear from the government on the strategy it should adopt for restructuring the operations, which have been in a pause mode for almost a decade.

The NBFC has communicated the failure of the process to rope in a strategic investor to the government and also reported the apprehensions that some of the bidders had regarding the convertible bonds issued to the Centre, which helped it tide over the financial crisis. IFCI was saddled with high cost debt and was finding it tough to pay bondholders prompting the government to step in.

Read more in The Business Standartd article.

ASK calls off JV with Raymond James

The ASK-Raymond James JV is no more. Brothers Asit and Sameer Koticha-owned ASK Investment & Financial Consultants has bought out the 50% strategic stake from Raymond James Financial, Inc. for an undisclosed amount. Raymond James will not have any presence in India post-deal. The Kotichas have kept their options open on having financial partner or strategic investor in the future.

Subsequent to the buyback, the 50% shares will remain with the two brothers-Asit and Sameer. In the new holding pattern, the two brothers will hold 75% shares and another 25% will stay with Bharat Shah, who will be heading the ASK Investment Managers Private Limited. The ASK Group also plans to enter mutual fund, real estate and NBFC businesses.

Read the Business Standard article.

Merrill Lynch eyes stake in India Infoline distribution arm

US-based brokerage and investment bank Merrill Lynch has initiated talks with India Infoline for acquiring a significant stake in its distribution subsidiary, India Infoline Distribution Company Limited (IILD). Merrill had recently hiked its stake in India Infoline to 14.10%. It may pick up to 26% in IILD for over Rs. 150 crores. In December 2006, India Infoline sold its stake in the subsidiary Khambhat Investment & Trading Company Private Limited, a non-banking finance company, to Merrill Lynch.

Merrill Lynch plans to enter into the Indian mortgage business, and is accordingly planning a tie-up with India Infoline for the same. The company expects to create synergies with India Infoline as it has a wide retail network of over 200 branches. IILD, apart from the distribution of financial products such as mutual funds, IPOs and fixed deposits, also distributes mortgages and loan products.

Read more in the article in Business Standard.