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Baring, GIC in talks to buy stake in Indian mortgage lender-sources
August 6, 2014 / 6:35 AM / 3 years ago

Baring, GIC in talks to buy stake in Indian mortgage lender-sources

MUMBAI, Aug 6 (Reuters) - Baring Asia and Singapore’s GIC are in separate talks to invest about $175 million to buy the 49 percent stake in India’s PNB Housing Finance Ltd currently held by investment firm New Silk Route, two people with knowledge of the matter said.

The deal could be finalised in about a month if the talks succeed, the people said. They declined to be identified as the negotiations were still private.

PNB Housing Finance is a domestic mortgage lending unit of state-run Punjab National Bank, which holds the remaining 51 percent stake.

“New Silk Route is in talks with multiple parties including Baring Asia for the exit,” one of the sources told Reuters.

Baring Private Equity Asia and New Silk Route Growth Capital declined to comment. GIC did not immediately respond to a Reuters query.

New Silk Route first invested in the mortgage lender in 2009 by picking up a 26 percent stake, and it later increased the holding to 49 percent.

One of the two sources estimated New Silk Route’s two-tranche investment at 2 billion Indian rupees ($32.62 million). (1 US dollar = 61.3150 Indian rupee) (Reporting by Indulal PM and Abhishek Vishnoi; Additional reporting by Saeed Azhar in Singapore; Editing by Rafael Nam and Miral Fahmy)

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