SBI, Coface in race for Global Fin stake
State Bank of India (SBI) and Coface, a global credit insurance and factoring company headquartered in Paris, have been shortlisted for buying the 52.5 per cent stake in India’s leading factoring company, Global Trade Finance (GTF). The final bidder will be chosen in a week’s time and the deal is likely to close by January end.
The promoters of GTF, Export-Import Bank of India (Exim) and IFC (Washington) had some months back decided to sell their stake.
Exim Bank of India and IFC (Washington) currently hold 40 per cent and 12.5 per cent stake respectively. The other shareholders are FIM Bank Malta, with a 38.5 per cent stake, and Bank of Maharashtra (9 per cent).
A host of private equity players, foreign banks and public sector banks had evinced an interest in buying into GTF. The investors who had submitted expressions of interests (EoIs) were JP Morgan Financial, GE Financial, Warbug Pincus, Actis (a private equity fund), Standard Chartered Bank, State Bank of India and Coface.
The two promoters Exim Bank and IFC Washington will sell their stake to the final shortlisted player between Rs 80 and Rs 110 a share. The deal will close by the end of January, said an executive close to the development.
The total equity of GTF is 7.7 crore shares. At a price of Rs 110 a share, the deal is valued at Rs 900 crore.
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