Dewan Housing signs Deutsche Postbank Home Finance deal for Rs1,079 crore
02 December 2010
Dewan Housing Finance Corp, the second-largest housing finance company in the Indian private sector, today said that it will buy the Indian housing finance business of Germany's Deutsche Postbank, Deutsche Postbank Home Finance, for Rs1,079 crore.
Dewan Housing along with its promoter group entity Wadhawan Housing (WHPL) and Caledonia Investments Plc, an existing long-term investor in DHFL, have entered into a definitive agreement to acquire 100 per cent stake in Deutsche Postbank Home Finance from BHW Holding AG, a wholly owned subsidiary of Deutsche Postbank AG for Rs Rs1,079 crore.
Post transaction, Dewan Housing said that it will hold 67.5-per cent stake in Deutsche Postbank Home Finance.
Dewan Housing, which holds a consolidated home loan portfolio of around Rs9,000 crore, will boost its business by more than 40 per cent through the acquisition. Deutsche Postbank Home Finance has a market share of between 1.5 per cent and 2 per cent.
Post transaction, Dewan Housing's combined asset base will be more than Rs20,000 crore.
The acquisition would be Mumbai-based Dewan Housing's second buyout after its purchase of Vysya Bank Housing Finance in 2004.