A part of Citi may soon be under new ownership. Shriram Transport is close to buying CitiGroup''s asset based financing business as talks between the two companies are in their final stages. While the valuation of Citi''s division is still underway, the assets under this transaction are worth around Rs 4,000 crore.
The business includes commercial vehicle, construction equipment, engineering and medical equipment financing. Both Shriram and Citi refused to comment on the deal. However, it is clear that the earlier list of buyers that included names like HDFC Bank, Kotak, Sundaram, is now down to just shriram Transport Finance.
Citi considered selling this business to tide over its first quarter losses and now its seems eager to exit this portfolio as the commercial vehicle business has remained depressed in FY09 after a dim domestic sales of CV grew only four per cent in the first half of 2008-09, while consolidated profits of the five biggest players fell 27.56 per cent.
For Shriram, this could mean scaling up its operations and to an extent even diversifying, as it would include the construction equipment and engineering financing as well.
The business includes commercial vehicle, construction equipment, engineering and medical equipment financing. Both Shriram and Citi refused to comment on the deal. However, it is clear that the earlier list of buyers that included names like HDFC Bank, Kotak, Sundaram, is now down to just shriram Transport Finance.
Citi considered selling this business to tide over its first quarter losses and now its seems eager to exit this portfolio as the commercial vehicle business has remained depressed in FY09 after a dim domestic sales of CV grew only four per cent in the first half of 2008-09, while consolidated profits of the five biggest players fell 27.56 per cent.
For Shriram, this could mean scaling up its operations and to an extent even diversifying, as it would include the construction equipment and engineering financing as well.
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