BPEA EQT and ChrysCapital are to acquire a 90% stake in HDFC Credila, Housing Development Finance Corporation’s (HDFC) education finance arm, for $1.11bn, in what will be India’s largest-ever financial services sector private equity buyout, according to a report by Reuters.
As well as the purchase price, the PE firms have also agreed to inject around $250m into the business.
The deal fits with an Indian central bank regulatory requirement for HDFC to reduce its holding in HDFC Credalia to 10% within two years of the effective date of its $40bn merger with HDFC Bank which is expected to complete next month. Post closing, HDFC will retain a 9.99% share in the business.
Get the week’s top news delivered directly to your inbox – Sign up for our newsletter
Jefferies acted as the exclusive financial advisor to HDFC and HDFC Credila on the deal, which is subject to regulatory approvals from the RBI and the Competition Commission of India.
Source: Private Equity Wire
Can’t stop reading? Read more
Fintech meets private equity as Ardian and ROYC partner to scale European wealth reach
Fintech meets private equity as Ardian and ROYC partner to scale European wealth reach Ardian has...
KKR and Stonepeak agree £1.7bn buyout of UK healthcare landlord Assura
KKR and Stonepeak agree £1.7bn buyout of UK healthcare landlord Assura Private equity firms KKR...
Partners Group and Perpetual team up to launch hybrid public-private investment strategies
Partners Group and Perpetual team up to launch hybrid public-private investment strategies...