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DHFL buys Deutsche Postbank's unit for Rs 1,079 crore

Press Trust Of India  |  New Delhi 

Mumbai-based Ltd (DHFL) today said it will acquire for Rs 1,079 crore.

Following the acquisition, Group's combined asset base will exceed Rs 20,000 crore. It expects that its active customer base would be over 200,000 by the end of the current financial year.

"DHFL, along with its promoter group entity Wadhawan Housing Pvt Ltd and Caledonia Investments Plc have today entered into a definitive agreement to acquire 100 per cent stake in the company from BHW Holding AG for a total cash consideration of Rs 1,079 crore," DHFL said in a statement.

Caledonia is a long-term investor in DHFL, while BHW Holding is a wholly-owned subsidiary of Deutsche Postbank AG. DHFL said the deal is the largest in the housing finance space.

Post transaction, DHFL will hold 67.5 per cent equity stake in the company. The deal is subject to regulatory approvals.

"The acquisition would provide Dewan Housing access to customers in the upper income level. We are currently present in mid and low level customers (space). This will help in increasing our assets, managing more of housing loans," Dewan Housing CEO said.

The balance sheet size of DHFL would increase to Rs 20,000 crore by March next year, from Rs 11,400 crore as on September.

The balance sheet size of (DPHFL) is about Rs 5,500 crore.

As on September 30, DPHFL's home loan portfolio stood at Rs 4,813 crore and networth was at Rs 524 crore. It has over 32,000 customers, serviced through its 25 branches, 14 sales offices and 3 processing units across the country.

DHFL, meanwhile, has presence in over 340 locations across the country.

"Acquisition of DPHFL will offer DHFL the perfect opportunity to round out its range of services and strengthen its market position," DHFL's Chairman and Managing Director said.

First Published: Thu, December 02 2010. 00:18 IST