AIG Capital to buy 75 pc in Vivek Hire Purchase
AIG Capital India Private Ltd, a wholly owned subsidiary of AIG Capital Corporation, USA, signed an agreement to acquire a controlling stake in Vivek Hire Purchase & Leasing Ltd (VHPL), a non-banking finance company offering consumer finance. Subject to regulatory approvals, the transaction is expected to close in early 2007.
VHPL is owned by the promoters of Vivek Ltd, one of the largest consumer durable retailers in India. On the closing of the transaction, AIG Capital India Private Ltd will acquire a 75 per cent ownership stake and management control of VHPL and the Vivek Ltd promoters will retain a 25 per cent stake. VHPL and Vivek Ltd also signed a retailer co-operation agreement for the mutual benefit of both companies.
Edelweiss Capital Ltd & Amarchand Mangaldas advised AIG and Spark Capital Advisors (I) Pvt Ltd. & HSB Partners advised VHPL and its promoters.
Speaking to Business Line about the takeover, Mr B.A. Srinivas, Director, Vivek Ltd, said that the Vivek Hire Purchase & Leasing was a deposit-taking NBFC, with deposits of about Rs 7 crore and advances of about Rs 12 crore.
Vivek plans IPO: Vivek Ltd today has 54 branches across the country and expects to end the year with a turnover of about Rs 400 crore.
Mr Srinivas said the company intended to grow in retailing business and towards that end, wanted to expand its equity base.
He said that the company was looking at options to raise funds from private equity investors. A PE investment in the company could happen within the next six months, , he said. After that the company would come out with its maiden public offering, he said.
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