Financial Daily from THE HINDU group of publications
Wednesday, May 12, 2004
Financial Daily from THE HINDU group of publications Wednesday, May 12, 2004 |
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Corporate
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Mergers & Acquisitions Money & Banking - Housing Finance Germany's BHW takes over Birla Home Fin Our Bureau
New Delhi , May 11 BHW Holding AG, one of the largest private sector retail home finance companies in Germany, has acquired 100 per cent stake in Birla Home Finance Ltd in a "friendly takeover". The German company has paid Rs 110 crore to increase its stake in Birla Home Finance from 50 per cent to 100 per cent, a Birla Home Finance spokesperson told Business Line. "BHW has recently concluded an agreement with its Indian joint venture partner, Chambal Fertilisers and Chemicals Limited, the flagship company of the K.K. Birla Group, to acquire the home finance company. The takeover is expected to be completed by the end of this month after necessary formalities are completed," he said. The name of the new entity has not been decided, but it is expected that the `Birla' name will continue. Chambal Fertilisers will also continue to be a partner company, offering its expertise of the Indian market. "The Birlas enjoy brand equity in the Indian market and we would like to leverage that. As it is a friendly takeover, we believe that the company's face to its customers will not undergo any major change," the spokesperson said. The company will retain its Chairman, Mr H.S. Bawa, who is a K.K. Birla group nominee. The Managing Director of the company, Mr Ralph Haerke, will also continue in his position. The company will also expand into the lucrative Mumbai real estate business and is set to open its first office in the metropolis this week. Birla Home Finance was hitherto active in South, North and East India, he said.
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