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).
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.