Competition Commission of India Approves Warburg Pincus’ Acquisition of Shriram Housing Finance
The Competition Commission of India (CCI) has given the green light for Warburg Pincus to acquire Shriram Housing Finance Limited (SHFL) through its affiliate, Mango Crest Investment. This was announced by the antitrust regulator on Tuesday.
Details of the Acquisition
Mango Crest Investment Ltd, a company based in the Republic of Mauritius, will be undertaking investment holding activities in SHFL. The principal business activity of Mango Crest is investment holding.
Shriram Housing Finance Limited (SHFL) is a housing finance company registered with the National Housing Bank (NHB). The company is part of the Shriram Group, which has a legacy of nearly five decades. The Shriram Group was founded by Ramamurthy Thyagarajan, AVS Raja, and T Jayaraman, and has diversified into various sectors including Commercial Vehicle Financing, Consumer and Enterprise Finance, and Retail Stock Broking.
Transaction Details
In May, Shriram Finance Limited (SFL) announced its plans to sell its housing finance subsidiary to Warburg Pincus for Rs 4630 crores. SFL holds a controlling stake in SHFL, while Valiant Partners L.P. holds the remaining stakes.
Additional Approvals
Separately, the CCI also approved the acquisition of Apollo Healthco by Advent through Rasmeli, a business entity incorporated in Cyprus. Rasmeli will make a minority investment in Apollo Healthco over two tranches, gaining certain rights in the company.
Doubts Revealed
Competition Commission of India (CCI) -: CCI is a government body in India that makes sure companies don’t do unfair things to become too powerful and harm competition.
Warburg Pincus -: Warburg Pincus is a big company that invests money in other companies to help them grow.
Shriram Housing Finance Limited (SHFL) -: SHFL is a company in India that gives loans to people so they can buy homes.
Mango Crest Investment -: Mango Crest Investment is a company based in Mauritius that will hold investments in SHFL.
Mauritius -: Mauritius is a small island country in the Indian Ocean, known for its beautiful beaches.
Rs 4630 crores -: Rs 4630 crores is a very large amount of money in Indian currency, equal to 46.3 billion rupees.
Equity and convertible instruments -: Equity means owning a part of a company, and convertible instruments are special financial tools that can be changed into shares of the company.
Shriram Finance Limited (SFL) -: SFL is a company that controls SHFL and provides various financial services in India.
Valiant Partners L.P. -: Valiant Partners L.P. is another company that owns part of SHFL.
Advent -: Advent is a company that invests in other businesses to help them grow.
Apollo Healthco -: Apollo Healthco is a company that provides healthcare services and products in India.
Rasmeli -: Rasmeli is a company that will help Advent in acquiring Apollo Healthco.
