Chennai, September 12, 2008 : Shriram Group and TPG Capital, a leading global private equity investment firm, today announced a definitive agreement in which TPG will make an investment of up to $120 million (Rs. 530 Crores) to acquire a stake of up to 49% in Shriram Retail Holdings Private Limited (SRHPL), the holding company of Shriram City Union Finance Limited (SCUFL).
The transaction will necessitate a public announcement of an open offer for shares of SCUFL in compliance with SEBI’s Takeover Regulations. TPG will beneficially own up to 26.7% of SCUFL excluding shares that may be tendered in the open offer. The investment is subject to approval of the FIPB and other regulatory agencies.
This is TPG’s second investment in the Shriram Group. In February 2006, the firm, then known as Newbridge Capital, invested approximately $100 million into Shriram Holdings (Madras) Private Limited, taking a stake in its subsidiary Shriram Transport Finance Company Limited.
R.Thyagarajan, Chairman of Shriram Group, informed that “TPG has been a partner with Shriram Group in its Commercial Vehicle Financing business since 2006 and their involvement has had a positive impact in the growth of the business. We are extremely thankful to them for the confidence reposed on us and are delighted on their involvement in the Consumer Finance Business of the Group, which will also significantly strengthen this business.”
Puneet Bhatia, who headed the transaction for TPG, said, “We are very pleased to partner with the Shriram Group for the second time after our terrific experience on the previous investment in Shriram Transport Finance, which has made great strides and continues to perform in a stellar manner. Shriram City Union Finance has a unique franchise and possesses the formidable Shriram group culture of inclusive growth and value creation, and is well-positioned to ride the attractive macro opportunity to emerge as a leader in the retail finance landscape in India.”
TPG was advised by DSP Merrill Lynch Limited and J. Sagar Associates and the Shriram Group was advised by Kanga & Co.
About Shriram City Union Finance Limited
Shriram City Union Finance Limited ¬is the consumer finance arm of the Shriram Group with a focus on consumer durable, two-wheeler, personal and enterprise financing across India. The Company began operations in 1986 as a deposit-taking NBFC engaged exclusively in truck financing until 2002, and thereafter expanded into consumer finance. As part of its growth strategy, the Company plans to leverage Shriram Group’s large chit-fund network to build its asset book in personal and enterprise loans by primarily targeting non-metro, semi-urban and rural areas through the large branch network. In the last couple of years various other PE investors like Chrys Capital, Merrill Lynch, Cambridge, ICICI Ventures, Asia Bridge and Bessemer have invested in the Company. Please visit http://www.shriram.com/shriramcity.html.
About TPG Capital
TPG Capital is the global buyout group of TPG, a leading private investment firm founded in 1992 with more than $55 billion of assets under management and offices in San Francisco, London, Hong Kong, New York, Fort Worth, Menlo Park, Washington, D.C., Melbourne, Moscow, Mumbai, Paris, Luxembourg, Beijing, Shanghai, Singapore and Tokyo. TPG Capital has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures and restructurings. Please visit www.tpg.com.
For further queries, please contact
Anu Lakshman
IPan
Tel : +91 44 28217294
Mobile+ 91 98410 39574
Email : anu.lakshman@ipan.com
D.V.Ravi
Director,
Shriram Retail Holdings (P) Ltd
Tel : +91 44 2499 0356
Mobile : +91 98403 40262
Email : dvravi@shriram.com
