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Our Bureau

Societe Generale, Burmans to be partners

Kolkata , July 5

The Apeejay Surrendra Group on Wednesday announced divestment of 75 per cent stake in its financial subsidiary, Apeejay Finance, in favour of Societe Generale and its partners, the Burmans, who control Dabur India.

With this, the Group's equity holding in the financial subsidiary drops to 25 per cent.

The deal, clinched on June 30, is subject to approval of the Indian authorities, according to a statement issued by the Group.

When contacted, Mr Karan Paul, Chairman, said: "The strategic partnership will bring in valuable contributions from our partners in terms of funding, processes and distribution network and drive the performance of Apeejay Finance to new heights." He refused to give other details.

Mr Jean-Francois Gautier, Head of Specialised Financial Services of Societe Generale Group, in a statement said: "The acquisition of Apeejay Finance allows us to set foot on the fast-growing Indian consumer credit market.

"Building on the strength of Apeejay Finance's teams and on the local knowledge of the Burman and Paul families, our partners, and the financial and industrial knowhow of the Societe Generale Group should lead the newly acquired business to becoming one of the leaders of consumer credit in India."

The acquisition is in line with the development strategy of the Specialised Financial Services of the Societe Generale Group in Asia and complements its set-up in India where ALD Automotive (operational car leasing and fleet management) started operating in June 2005.

It also reinforces the international share of the Group in consumer finance, with geographical coverage now extending to 16 countries.

Mr Gaurav Burman of Promethean Investments said in a statement: "We are pleased to be working with Societe Generale and Apeejay Finance in building what we believe can be a good business for the future. The financial services sector is one in which my family has invested in previously and we can think of no one we would rather partner with for this project."

Incorporated in 1933, Apeejay Finance has been engaged in financing a wide range of products including cars, utility vehicles, commercial vehicles, two-wheelers, and consumer durables. The company employs 166 people in nine States.

Headquartered in Kolkata, it operates through a network of 18 commercial branches covering several cities. Apeejay Fianance manages over Rs 500 crore in outstanding loans.

More Stories on : Mergers & Acquisitions | NBFCs | Dabur India Ltd

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