Two Tamil Nadu based financial institutions are looking to acquire CitiFinancial India.
Shriram City Union Finance is the consumer finance arm of the Shriram Finance. Shriram City has appointed Bank of America-Merill Lynch as the advisor. The other entity is Lakshmi Vilas Bank which is a mid size bank with majority of its 271 branches in Tamil Nadu and South India. LVB has appointed JM Financial as the advisor on the deal.
CitiFinancial is the consumer finance arm of Citibank and comes under Citi Holdings globally. Citi Holdings contains all the non-core assets of Citibank which will be sold off over time. One of the pioneers of the personal loan movement, CitiFinancial India got into trouble due to higher delinquencies in low income loans.
Transaction Reference : ET, Moneycontrol
CitiFinancial has close to 120 branches and around Rs. 9,000 crore in assets. Apart from branches with good locations, CitiFinancial has a home loan business that both buyers are interested in. Shriram City has a very similar portfolio to CitiFinancial except the home loan business. LVB is planning to set up a housing finance NBFC for its mortgage entry and plans to acquire CitiFinancial through it.
Kotak Mahindra Bank was in discussions to acquire CitiFinancial, but the discussions seem to have fallen through.
KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
| 23/07/10 |
CitiFinancial India - Shriram City Union, Lakshmi Vilas Bank |
M&A |
Shriram City Union Finance Limited |
- |
| Date | Type | Buyer | Target | Size ($mn) | State |
| 08/02/12 |
Private Equity |
|
ICICI Bank Limited |
- |
Completed |
| 08/02/12 |
Private Equity |
Verlinvest SA |
Cuisine Asia |
- |
Completed |
| 07/02/12 |
M&A |
Piramal Healthcare Limited |
Looking For |
- |
Planned |
| 07/02/12 |
Private Equity |
Life Insurance Corporation of India |
Dena Bank |
25.49 |
Announced |
Company |
| Name | Promoters | Office | Competitor | Website |
| Shriram City Union Finance Limited |
Shriram Group |
No. 123, Angappa Naicken Street,
Chennai – 600 001. |
Cholamandalam DBS Finance Limited |
shriramcity.in/ |
| CitiFinancial Consumer Finance India Limited |
Citibank Limited |
3 Local Shopping Complex,
Pushp Vihar,
New Delhi-110062. |
|
https://www.citifinancial.co.in/ |
| Lakshmi Vilas Bank Limited |
|
Salem Main Road, Kathaparai, Karur-639006. Tamil Nadu, India. |
Dhanlaxmi Bank Limited |
www.lvbank.com |
 |
JM Financial Consultants Private Limited |
| |
DSP Merrill Lynch Limited - (IB) |
