US EditionJapan's MUFG to buy 20% stake in India's Shriram Finance for $4.4 billion
MUFG's $4.4 billion investment secures a 20% stake in Shriram Finance, enhancing capital adequacy and supporting long-term growth in India's retail finance sector.
- On Friday, the Board of Directors of Shriram Finance Limited approved MUFG's $4.4 billion acquisition of a 20 per cent stake, described as the largest cross-border FDI in India's financial services sector.
- Amid a shrinking domestic market in Japan, MUFG Bank aims to bolster Shriram Finance Limited's capital and governance, with Masashige Nakazono saying it's to secure India's domestic demand.
- Included in the agreement are minority-protection rights for MUFG Bank, a one-time $200 million fee to Shriram Ownership Trust, and approvals with KPMG India, J.P. Morgan, AZB & Partners, Nishimura & Asahi, and Wadia Ghandy & Co. involved.
- Investor reaction has been notable as Shriram Finance Limited shares have risen about 46 per cent since early October, while Shriram Capital is considering a preliminary restructuring without final board approval.
- The deal builds on Mitsubishi UFJ Financial Group's 130-year India presence, having invested $1.7 billion and supported 5,000 jobs, plus its $565 million stake in DMI Finance last year.
16 Articles
16 Articles
MUFG to Invest $4.4 Billion in Shadow Bank in Key India Deal
Mitsubishi UFJ Financial Group Inc. is investing 396.2 billion Indian rupees ($4.4 billion) in Indian shadow lender Shriram Finance Ltd. for a minority stake, the latest Japanese firm expanding in a rapidly growing banking market.
Shriram Finance Inks Pact with Japan's MUFG Bank for Investment of Rs 39,618 Crore; MUFG to Acquire 20% Stake
Get latest articles and stories on Business at LatestLY. Shriram Finance Limited (SFL) has entered into a definitive agreement with MUFG Bank Ltd., Japan's largest bank and a part of Mitsubishi UFJ Financial Group (MUFG), for an investment of Rs 39,618 crore, the company informed stock exchanges in a regulatory filing on Friday. Business News | Shriram Finance Inks Pact with Japan's MUFG Bank for Investment of Rs 39,618 Crore; MUFG to Acquire 20…
Japan's MUFG Bank to invest Rs 39,618 crore in Sriram Finance for 20% stake
Shriram Finance Limited (SFL) has entered into a definitive agreement with MUFG Bank Ltd., Japan's largest bank and a part of Mitsubishi UFJ Financial Group (MUFG), for an investment of Rs 39,618 crore, the company informed stock exchanges in a regulatory filing on Friday.
Japan’s MUFG to invest $4.45 billion on Shriram Finance in biggest FDI in Indian financial services
Mitsubishi UFJ Financial Group is set to invest $4.45 billion for a 20% stake in Shriram Finance, marking the largest FDI in India's financial services sector. This strategic move paves the way for an eventual acquisition, with MUFG aiming to increase its holding and gain majority control over time.
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