AIG Capital to pick 75pc in VHPL

New Delhi, Dec 19 (UNI) AIG Capital India Private Ltd, a wholly owned subsidiary of the US-based AIG Capital Corporation, will acquire a controlling stake in Vivek Hire Purchase and Leasing Ltd (VHPL) for an undisclosed amount.

VHPL, a non-banking finance company offering consumer finance, is presently owned by the promoters of Vivek Ltd, one of the largest consumer durable retailers in India.

After the transaction, AIG Capital India Private Ltd will acquire a 75 per cent ownership and management control of VHPL while the Vivek Ltd promoters will retain a 25 per cent stake.

Mr Sunil Mehta, Country Head and CEO, AIG India said, '' We look forward to partnering with Vivek Ltd, a leader in consumer durable retailing in India, in growing VHPL to a leadership position in the consumer finance industry.'' Subject to regulatory approvals, the transaction which is the maiden acquisition by AIG Capital into the consumer finance industry in India, is expected to close in early next year.

Post acquisition, Vivek Ltd will focus on growing its core durable retailing business, Vivek Ltd Chairman B A Kodandarama Setty said.

Edelweiss Capital Ltd and Amarchand Mangaldas advised American International Group Inc (AIG) and Spark Capital Advisors (I) Pvt Ltd and HSB Partners advised VHPL and its promoters for the deal.

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