Exim, FIMBank to pick 40% in GTF

West LB's 40 per cent stake in Global Trade Finance (GTF) will be picked up by Exim Bank (5 per cent) and FIMBank, a Malta based merchant bank (35 per cent).

GTF is a joint venture non-banking finance company of Exim Bank, West LB and International Finance Corporation engaged in forfeiting and factoring services.

As part of restructuring of GTF's stake, International Finance Corporation has also proposed to reduce its stake from 25 per cent to 15 per cent in line with its general policy.

GTF became operational in October 2001 with a paid-up capital of Rs 45 crore. It is a joint venture between Exim Bank, West LB, a leading German commercial bank, and IFC with equity participation of 35 per cent, 40 per cent and 25 per cent.

IFC's 10 per cent stake is proposed to be acquired by Bank of Maharashtra. The bank's board has approved the proposal to acquire the stake at a face value of Rs 4.5 crore with a minimum premium of 25 per cent or at a premium as approved by Exim Bank subject to BoM's investment not exceeding Rs 6 crore.

The bank has approached the Reserve Bank of India and the union finance ministry early this month and their approvals are awaited, according to MahaBank's notice to the stock exchange.