First Global calls off buyout of Way2Wealth

Shankar Sharma-owned First Global, has called of its plans for acquisition of the Bangalore-based internet portal Way2Wealth.com, citing technical reasons.

However, First Global is in talks with six others securities firms for acquisition, and the options for inorganic growth are being pursued still, according to Sharma.

"The deal is called off as the process of buying back of shares of Way2Wealth from other promotors and investors in the company for alloting the same to First Global group was not fulfilled within to the time specified in the initial agreement," Sharma said on Wednesday.

"However, acquisition of the company is not totally ruled out. If they can fulfil this condition at the earliest, we may consider going ahead with the acquisition. We have asked the present promoters of Way2Wealth to sort out their internal matters before coming up to us for signing memorandum of understanding," Sharma added.

Way2Wealth is a multi-product financial services company involved in equity brokerage, mutual fund distribution, insurance sales and wealth management.

Though no precise value of the deal was made public at the time of announcement of the deal on July 21, 2005, Sharma said that the overall valuation of Way2Wealth was closer to that of Indiabulls Securities.

Sharma said that his multinational securities company was actively considering acquisition of a synergistic company for acheiving inorganic growth in the next few months.

"We are looking into six other options, and an announcement will be made once we zero in on one of them," Sharma said.

Announcing the deal last month Sharma had said, "We are aiming to be a top-tier player in the financial services space and we have entered into the bulge bracket with this deal."

First Global is the India's multinational securities house, with membership on London Stock Exchange (LSE) and the Nasdaq. Thus, it has offices in New York and London, besides its offices in India.