India Infoline to buy Singapore firm's stake in its 2 arms

Domestic brokerage house India Infoline today said it will acquire Singapore-based Orient Global's stake in the former's two unlisted subsidiaries for $80 million (nearly Rs 369 crore).

"The company received offer from Orient Global Tamarind Fund Pte Ltd Singapore, to sell their equity holding held in the two unlisted subsidiaries of the company--India Infoline Investment Services (IIISL) and India Infoline Marketing Services (IIMSL) to the company," the brokerage said.

"The company has accepted the same subject to execution of necessary documents and regulatory compliances," India Infoline said in a filing to the Bombay Stock Exchange (BSE).

On closure of the transaction, the company would acquire from Orient Global 5,283,870 shares of IIISL, representing 22.28 per cent stake in the entity for a cash consideration of $72 million.

Besides, India Infoline will acquire 2,000,000 shares of IIMSL, representing 10.44 per cent stake, for $8 million.

Post transaction, the company's stake in IIISL and IIMSL will increase to 99.02 per cent and 99.16 per cent, respectively.

Earlier, Orient Global had acquired 5,283,870 shares of IIISL in November 2007, and February 2008, for a total of Rs 43.82 crore. It had purchased 20 lakh shares of IIMSL in January last year for Rs 19.69 crore.

Shares of India Infoline today closed at Rs 124.05, down 4.28 per cent on the BSE.