Financial services firm Religare Enterprises has submitted a non-indicative bid to buy the Asian private banking assets of Dutch insurance and banking major ING, said a person familiar with the development.
Zurich-based financial services firm Credit Suisse and a couple of Singapore banks are also said to be in the fray for the business that manages assets of e11 billion (Rs 75,250 crore), he said, requesting anonymity.
ING, badly hit by the global financial crisis, is looking to sell its Asian and European private banking portfolio for over $1 billion (around Rs 4,800 crore). However, this portfolio does not include ING’s Indian assets. The Dutch firm is looking to complete the sale by September.
Religare, owned by the family of industrialist Malvinder Singh which ran pharmaceutical firm Ranbaxy Laboratories till it was sold to Japan’s Daiichi Sankyo for Rs 10,000 crore last year, is the only Indian company to have put in a bid for ING’s assets.
Private banking caters to the high end of retail banking where services include the entire range of banking, investment and other financial services. These services are normally offered to clients with assets under management of $2 million (around Rs 9.5 crore) and above.
“As a policy, we do not comment on market rumours and speculations. However, as a group, we are constantly on the lookout for opportunities in line with our ambition of becoming a global leader in the financial services sector,” said a Religare spokesman. A spokesman for ING private banking refused to comment on the matter, which he termed as speculation. “We are continuing and we are committed to managing the private bank through these turbulent times, first and foremost focussing on our service to our clients,” he said.
The New Delhi-based financial services firm, which is looking to expand its global footprint, will get access to more products and people if it manages to acquire ING’s assets. “Religare will be able to get a presence across Asia. The pricing would depend on the asset composition and also the sustainability of these assets,” said the head of a mutlinational private banking unit, who asked not to be named.
Religare, which has also bid for AIG’s global assets, has a joint venture with Australian major Macquarie for its wealth management business in India. However, the bid for the ING assets have been made by Religare and not the joint venture.
Bankers said Religare would find it difficult to acquire the business as the Dutch player is more likely to go with an international player. Such businesses normally lose clients after takeovers, an industry executive said, requesting anonymity.
ING expects to raise euro 6-8 billion (Rs 29,000-38,500 crore) from the sale of some of its businesses. Jan Hommen, CEO of ING Group, had recently said ING will divest 10-15 businesses over the next 3-5 years if market conditions permit.
“The total proceeds from this exercise are expected to be euro 6-8 billion. Furthermore, divestments are expected to free up euro 4 billion in capital. ING’s focus on markets where it has or can achieve leadership position also means that ING will exit up to 10 of the 48 countries in which it is currently active,” he had said.
Source: Economic Times