Japanese major Marubeni Finance Corp is close to sewing up a deal to pick up a 26 per cent stake in the Lalbhais-controlled Anagram Finance Ltd.
The Lalbhai group which currently holds 75 per cent in Anagram is expected to shed its stake in favour of the finance arm of the Japanese conglomerate, Marubeni Trading Corporation.
A memorandum of understanding (MoU) is expected to be signed soon, sources added.
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Sanjay Lalbhai, chairman of Anagram Finance, refused to comment on the issue pointing out that talks were on with various companies. However, he did reveal that Anagram was on the lookout for a strong partner capable of accessing low cost funds.
In todays competitive scenario, I dont see many NBFCs surviving. If Anagram is to grow, we need a strong partner who can raise cheap resources and help us expand our market share aggressively, said Lalbhai. Marubeni is expected to add to Anagrams existing array of products.
The deal, if it comes through, will attract the provisions of the takeover code and Marubeni will have to make an open offer to the public for a further 20 per cent.
Anagram has been scouting for a partner for quite some time now. GE Capital was among the first to evince interest and talks between the two had been going on for quite some time. Though not formally called off, the talks apparently got bogged down at GEs insistence on full ownership of the company, against Lalbhais offer of a partial stake.
The GE groups worldwide policy is to hold complete control in all its operations. In its various Indian joint ventures too the group had been constantly hiking its stake. The companys 40:60 venture with Godrej is already in trouble over Godrejs refusal to let GE hike its stake to 51 per cent.
Anagram, which has a well-established network in the western region, is a strong player in the retail car and truck finance segments. It restructured its operations in 1993 identifying retail financing as a high growth area.