COMPETITIVE · REGULATORY · INDIA
Weaver Services acquires 75% stake in Centrum Housing Finance
Change
Weaver Services acquired a 75% stake in Centrum Housing Finance, and Centrum Housing Finance ceased to be a subsidiary of Centrum Group.
Why it matters
Weaver Services acquired a 75% controlling stake in Centrum Housing Finance. The acquisition received regulatory approval earlier in the month. Centrum Housing Finance ceased to be a Centrum Group subsidiary from the completion date. Weaver Services completed a two-tranche capital raise totalling Rs 1,450 crore, including Rs 950 crore in the latest tranche, to fund the acquisition. Premji Invest backed Weaver Services and Lightspeed Venture Partners co-led the recent funding round.
Implications
- · Centrum Group no longer consolidates Centrum Housing Finance as a subsidiary in its corporate reporting.
- · Weaver Services holds majority governance authority and capital responsibility for Centrum Housing Finance.
- · Funds raised (Rs 1,450 crore total; Rs 950 crore in the latest tranche) are allocated to finance Weaver’s acquisition commitment.
Who is affected
- · Seller's corporate finance and consolidation teams
- · Acquirer's integration and capital-allocation teams
- · Centrum Housing Finance board and management
- · Investors and funders involved in the financing round
Source
Topics
Business & Markets Mergers & Acquisitions Finance & Banking Banking Regulation Financial Services