AIG Capital India Private Limited, a wholly owned subsidiary of American International Group, Inc., signed an agreement to acquire 100% of the outstanding equity of Weizmann Homes Limited, a housing finance company registered with the National Housing Bank from Weizmann Limited, Federal Bank, Asian Investment & Finance Corporation Limited and other minority shareholders. Subject to regulatory approvals, the transaction is expected to close in April 2007.
Weizmann Homes is a 12-year-old, Bangalore-based housing finance company, with a branch network across 33 cities in India.
This is the second acquisition this year by AIG Capital India Private Limited in the Indian retail finance industry. AIG Capital India Private Limited had earlier acquired a controlling stake in the Chennai based, Vivek Hire Purchase and Leasing Limited.
Commenting on the development Mr. Sunil Mehta, Country Head & CEO, AIG India, said, “AIG is very excited about the opportunity to welcome the dedicated employees and customers of Weizmann Homes Limited into the AIG family. This acquisition will act as an important building block in establishing AIG’s consumer finance footprint in the Indian market. We feel that retail lending in India offers enormous growth potential and these acquisitions along with AIG’s global experience and expertise will help in building a robust consumer lending business here. We look forward to providing Weizmann Homes Limited’s customers with the high quality service they have come to expect from Weizmann Homes.”
Rick Pfeiffer, CEO of AIG Consumer Finance Group, Inc., stated “I am pleased to see our international consumer finance business grow in India. We are well positioned to leverage the product and distribution capabilities of Weizmann. Having lived in India and developed a consumer finance joint venture earlier in my career, I am very bullish about the Indian consumer finance market and of AIG’sfuture in that market.”
Mr. Chetan Mehra, Managing Director, Weizmann Limited said, “The home loans business has been built over the last 12 years with a lot of passion, commitment and effort and enjoys the unstinting and unparalleled trust of thousands of borrowers. The strength of our network, along with the strong management and dedication to our customers, that has characterized Weizmann Homes Limited since its inception, will continue under AIG’s ownership and management. We are confident of continued success of Weizmann Homes Limited in the future.”
Source : Moneycontrol