TI to acquire Cifco shares from group firms

By Our Corporate Reporter

CHENNAI, AUG. 28. Tube Investments of India, a part of the Murugappa group, will be raising its stake in Cholamandalam Investment and Finance Company (Cifco) through acquisition of shares held by other group outfits in the company.

TI proposes to acquire a maximum of 71.06 lakh shares (41.8 per cent of Cifco's equity). This will be made at a price of not exceeding Rs. 47 per share. The valuation is done by an independent agency.

TI has already bought 8.90 lakh shares of Cifco from Parry Agro Industries and New Ambadi Investments. Further Cifco shares are expected to be acquired from group companies over the next few weeks.

According Mr. M.V. Subbiah, Chairman of TI, the move to enter the financial services business, riding piggy-back on Cifco, would create growth opportunities for TI besides improving its quality of earnings.

Mr. M. Anandan, Managing Director, Cifco, stated in a release that the company's plans to enter the non-life insurance business would pick-up strength following the decision of TI to acquire 41.8 per cent of Cifco's equity.

Cifco is a leading non-banking finance company with subsidiaries in security trading, asset management and distribution businesses. It has `MAAA' rating indicating highest safety.

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Section  : Business
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