Mumbai-based Dewan Housing Finance is looking to acquire Deutsche Postbank Home Finance and the deal is expected to conclude early next week.
Sources close to the deal said Dewan Housing has submitted its bid to acquire Deutsche Postbank and a formal announcement to this effect will be made next week.
Investment banking firm Rothschild is acting as the advisor to Dewan Housing, while Deutsche Postbank has appointed Standard Chartered Bank, sources said.
Meanwhile, media reports said that Dewan Housing has valued the company at about $240 million (around Rs 1,100 crore). The deal would to provide Wadhawan family-controlled Dewan Housing synergies of operation.
The company services mid-level customers and with the acquisition it will be able to expand the reach to the upper strata of customers.
Sources said Tata Capital, L&T Finance and Religare have also evinced interest in buying the housing finance arm of Germany's largest retail bank Deutsche Postbank, AG, Group.
As on March 31, 2010, the housing credit market saw a loan disbursal of over Rs 4.30 lakh crore. Dewan Housing, which is in the business of providing home loans to individual for over three-decades, had a consolidated portfolio of Rs 9,000 crore.