Clyde & Co's Corporate team has been closely involved in a multi-million-pound deal to support the expansion of one of India’s leading private sector housing finance companies, Dewan Housing Finance Corporation Ltd (DHFL).
The team acted as International Counsel to the purchasers as a whole on this transaction, which was governed by UK law, as a result of an introduction by its longstanding client, listed Investment trust, Caledonia Investments PLC.
Caledonia Investments PLC has been a shareholder of DHFL since 2005 and together with Group companies invested £20m to facilitate a 13.9% stake in Deutsche Postbank Home Finance Ltd (DPHFL), a leading Indian home finance company. DHFL has, together with its promoter group, acquired the balance of DPHFL's equity. DPHFL was sold by BMW Holding AG, a subsidiary of Deutsche PostBank AG.
DPHFL was valued for the purposes of the transaction at approximately £148m. Following the acquisition DHFL's combined asset base will exceed approximately £2.8bn with an expected active customer base of over 200,000 by the end of the financial year. Making DHFL the third largest such vehicle in the Indian marketplace.
Paul Harding, a consultant at Clyde & Co, worked alongside associate Claire MacDonald in the deal.
Paul said: "We are delighted to have been able to support all the purchasers, but particularly Caledonia in this transaction. Caledonia is one the UK's largest investment trusts with assets of approximately £1.2bn. They hold a keen interest in the Indian housing finance sector and this purchase is a transformational deal for DHFL. "