Financial services provider Future Capital today said it will exit from its joint venture -- FCH Centrum Direct -- with Centrum Capital.
Moreover, Future Capital will acquire 50% stake of its JV partner Centrum Capital in another entity FCH Cetrum Wealth Managers, Kishore Biyani-led firm said in a statement.
"Future Capital Holding (FCH) and Centrum Capital (CCL) have mutually decided on the rearrangement of share holding on their two existing joint ventures, FCH Centrum Wealth Managers (FCH CWML) and FCH Centrum Direct (FCH CDL)," it said.
As per the agreement, Centrum Capital which is primarily into the business of forex money changing and travel solutions, will buy 50% stake currently held by Future Capital in the entity FCH Centrum Direct for Rs 100 crore.
In 2008, Future Capital had invested Rs 75 crore for 50% stake in this joint venture. Post this transaction, Centrum Capital will hold 100% stake of FCH Centrum Direct.
Future Capital will buy out 50% stake of FCH Centrum Wealth Managers from Centrum Capital for a consideration of Rs 1 crore as a part of the same agreement.
Future Capital had invested 50% stake in the joint venture with Centrum Capital for Rs 25 crore in 2008. After the transaction, Future Capital will hold 100% of this entity. FCH Centrum Wealth Managers is primarily in the business of retail wealth management.
"We are excited about building an excellent broking and wealth management franchise brought to us through the acquisition of FCH Centrum Wealth Managers. Our exit from the second Joint venture of FCH Centrum Direct is in line with our already stated strategy in this matter," Future Capital Vice Chairman and Managing Director V Vaidyanathan said.
The transactions which were approved by boards of the two companies are subject to regulatory approvals.
