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State Bank of India (SBI) and Paris-based Coface have reportedly been shortlisted for buying the 52.5 per cent stake in India's leading factoring company, Global Trade Finance (GTF). The final bidder will be chosen in a week's time and the deal is likely to close by January end, reports Business Standard. Coface is a French credit insurance and factoring company. SBI already owns a factoring company called SBI Factors.
Export-Import Bank of India (Exim) and IFC, the private equity arm of World Bank, who hold 40 per cent and 12.5 per cent, respectively, in the company has decided to sell their stake. The other shareholders are FIM Bank Malta (38.5 per cent) and Bank of Maharashtra (9 per cent). The stake may be sold at a price anywhere between Rs 80 and Rs 110, says the report. The total equity of GTF is 77 million shares. The deal may value the company between Rs 650 crore and Rs 800 crore.
Apparently, there had been interest from firms like JP Morgan Financial, GE Financial, Standard Chartered Bank, and PE firms Warbug Pincus and Actis, besides State Bank of India and Coface.
The other factoring companies in the business are SBI Factors, Canbank Factors, and Foremost Factors. Foremost is promoted by IFCI, which holds 49 per cent stake and the Delhi-based Mohan Group, which owns 48 per cent. IFCI too is believed to be looking at selling its stake in the company.