Sundaram finance ties up with UCB

Chennai, May 9 (UNI) Sundaram Finance Limited (SFL) and 'Union de Credit pour le Batlement (UCB), a wholly-owned subsidiary of BNP Paribhas, have reached an agreement for strategic patnership in housing finance in the country.

A company statement here today said following the agreement the UCB would acquire a 49.9 per cent stake in Sundaram Home Finance Limited (SHFL), a subsidary of SFL, for a consideration of Rs 196.98 crore.

The investment would be made through a combination of new issue of equity shares by SHFL and purchase of existing equity shares.

SFL would retain a 50.1 per cent equity stake in the company.

The joint venture wil be named Sundaram BNP Paribas Home Finance Limited.

Subject to relevant regulatory approvals, the transaction is expected to be completed in three months' time, the release said adding that the joint venture aims at growth, strongly supported by an exclusive distribution team provided by SFL and UCB's specialisation in housing finance globally.

UNI