The deal by India-based L&T Finance to offload its West Asian wealth management operations has been scrapped after failing to secure the regulatory nod.
“In light of the non-receipt of necessary regulatory approvals sought by the Purchaser, and in accordance with the terms of the Agreement, we wish to inform you that the parties to the Agreement have mutually terminated the Agreement with effect from July 2, 2020,” L&T confirmed the same in a stock exchange filing.
The deal was announced in November last year. Financial terms of the transaction were not divulged.
Under the agreement, L&T Finance entered into a share purchase agreement to sell its 100% stake in L&T Capital Markets to Proud Securities and Credits Private.
The deal forms part of L&T Finance’s strategy to sell its non-core activities and focus on the lending business.
It launched its wealth management services in Dubai in February 2016 after securing a Category 4 licence from the Dubai Financial Services Authority (DFSA).
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn 2019, L&T Finance sold its entire stake in L&T Capital Markets (LTCM) to IIFL Wealth Group.
Operating as the wealth management arm of L&T Finance, LTCM had branches in nine locations across India. The business catered to individual as well as institutional clients.
Notably, L&T Finance secured a funding of $550m in an investment round led by World Bank’s International Finance Corporation last year. BNP Paribas, Citibank, and DBS Bank also participated in the fundraising.