Industrial Development Bank of India (IDBI) is learnt to be in talks with GE Commercial Finance (GE), the financial arm of GE, to pick up around 25% stake in the latter’s construction equipment finance business in India.
Infrastructure Development Finance Company (IDFC) will also hold around 35% stake in it. Sources close to the development confirmed the move and said GE is all set to hive off its construction equipment finance business into a separate Rs 650-800 crore joint venture company and is in talks with IDFC and IDBI for the same.
When contacted, the GE spokesperson said: “We treat our business and customer discussions with high confidentiality and are unable to disclose any details.” An IDBI senior official did not respond to an e-mail ET sent addressing the query.
ET was the first to report that IDFC is in talks to acquire around 35% in GE’s construction equipment finance business and that the process pertaining to the transaction should have ideally been comp leted by the middle of the year.
“Talks were initiated in the beginning of this year but global market slowdown and the current turmoil in the financial services sector led to the delay in the agreement. It may take some time for the final deal to come through,” said a source.
Source: Economic Times