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Warburg Pincus to buy 80% stake in Avanse Financial from DHFL, Wadhawan

Avanse Financial Services is an education-focused NBFC

Press Trust of India  |  New Delhi 

joint venture, mergers
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Global private equity Group will acquire nearly 80 per cent stake in education NBFC firm from Corporation Ltd (DHFL) and

(WGC) Saturday announced that they have entered into a definitive agreement with an affiliate of the Group to sell its entire 49.04 per cent stake in its education subsidiary, limited.

Separately, DHFL also said that the company will sell its entire stake of 30.63 per cent in to an affiliate of the Group.

Both the however, did not disclose the financial details of the transaction.

Avanse Financial Services is an education focused NBFC. It is an associate enterprise of WGC, a diversified financial services group and housing firm DHFL.

Avanse is also backed by the (IFC), which has 20 per cent equity stake in the company.

Commenting on the development, WGC said: "The transaction with Warburg Pincus will allow the company to further strengthen their position in the education financing industry. This sale also unlocks the latent value within the while reinstating our immediate and long-term focus on our core business."

(EY) and were the to the company and the sellers on the transaction. acted as the to the sellers and company on this transaction.

DHFL further said that it has entered into a share purchase agreement with the Warburg Pincus Group, Avanse and the other sellers including WGC.

The proposed transaction is subject to applicable regulatory and other approvals and certain other conditions.

In a separate filing, DHFL said it is undertaking corporate re-organisation within the company and announced resignation of its

"Santosh Sharma (currently the CFO) will assume a new role as the Head - Corporate Strategy with effect from March 16, 2019. The Accounts and Finance function which was currently supervised by the Chief Financial Officer, shall now be supervised by of the company, respectively," the company added.

DHFL's has resigned from the company with effect from March 15, 2019.

Meanwhile, DHFL's V K Chopra had also resigned.

DHFL is under the scanner of various authorities following allegations of siphoning off Rs 31,000 crore out of total of Rs 97,000 crore through layers of shell

First Published: Sat, March 16 2019. 14:15 IST