Mitsubishi announces $4.4bn Shriram deal
The Indian financial services outfit will issue 47.1 crore shares at Rs 840.9 each to MUFG Bank through a preferential allotment, it said in a stock exchange filing.
MUFG will be able to nominate two directors on the board of Shriram Finance (SFL).
The investor will also have a pre-emptive right to subscribe to pro rata shareholding.
“These rights shall fall away if the shareholding of the investor in the company falls below 10 per cent on a fully diluted basis,” a press release said. In its edition on Wednesday, TOI had reported about the proposed transaction.
“This collaboration combines SFL’s established domestic franchise and extensive distribution network with MUFG Banks’ global expertise and financial strength.
The fund infusion will significantly enhance SFL’s capital adequacy, strengthen its balance sheet, and provide long-term growth capital.
It will improve access to low-cost liabilities and potentially strengthen SFL’s credit ratings while aligning governance and operational practices with global best standards,” the NBFC said in a statement.
