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ICICI Bank plans to acquire Transamerica for Rs 74 crore

Source: PTI
January 04, 2003 15:29 IST
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In a bid to enhance its auto-finance business, ICICI Bank plans to acquire 100 per cent stake in Transamerica Apple Distribution Finance, an auto distribution finance company, in an all cash deal for Rs 74 crore, subject to Reserve Bank of India approval.

"The acquisition of TADFL, a 70:30 joint venture between Tranamerica Distribution Finance of US and Atul Nishar-promoted Apple Credit, will supplement our two-wheeler retail operations especially dealer finance," ICICI Bank executive director Chanda Kochhar said in Mumbai Saturday.

"TADFL has 75 per cent share in the dealer financing for TVS and Yamaha two-wheelers. It has a small exposure to retail finance and tractor industry segment while its asset base was Rs 217.9 crore (Rs 2.17 billion)," she said.

The acquisition will be finalised after completing audit for TADFL's accounts for April-November 2002 or any mutually agreed period, Kochhar said.

After the completion of the acquisition, ICICI Bank's two-wheeler portfolio would be Rs 500 crore (Rs 5 billion), she said, adding currently, ICICI Bank's retail assets stood at Rs 15,000 crore (Rs 150 billion).

As on March 31, 2002, the private sector bank's total asset base stood at Rs 104,110 crore (Rs 1041.1 billion), she said.

JM Morgan Stanley acted as a financial advisor to Transamerica Distribution Finance, a company owned by Dutch insurance major Aegon N V for this deal, she added.

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