L&T Finance Holdings buys FamilyCredit

Last Updated: Tue, Oct 23, 2012 05:20 hrs

L&T Finance Holdings Limited on Monday announced 100 per cent acquisition of FamilyCredit Ltd, a wholly owned subsidiary of France’s Société Générale Consumer Finance.

FamilyCredit is a non-banking financial company (NBFC) having two-wheel and automobile loans as its products.

L&T Finance would acquire the company for Rs 120 crore, it said in a statement.

This is the third acquisition for L&T Finance Holdings this financial year, after it acquired mutual fund business of Fidelity in the country and also Indo Pacific Housing Finance Ltd for Rs 110 crore, through which it entered housing loans segment. The regulatory approvals are yet to come through, the statement further added.

This acquisition will consolidate the company’s presence in auto financing business as it already offers commercial vehicles and construction equipment finance through its subsidiary L&T Finance.

As of June, FamilyCredit Ltd had loan book size of Rs 1,287 crore, of which, two-wheeler portfolio was 53 per cent and the car portfolio was about 35 per cent.

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