Dewan Housing Finance Corporation Ltd (DHFL) is planning to split its retail and wholesale loans businesses and will sell them to distressed assets investors and investment firms, a report in The Economic Times stated.
Citing two persons in the know, the report added that distressed assets investors Cerberus Capital and Lone Star Funds, and the Piramal Group are keen on purchasing DHFL’s retail loan book.
Global alternative investment management firm Oaktree Capital will buy the wholesale loan book, which comprises 20% of the business, said the report, citing one of the persons mentioned above.
In January this year, Oaktree invested Rs 1,375 crore ($194 million) to buy loans from Dewan Housing Finance Corporation Ltd.
Last month, Dewan Housing, along with its parent Wadhawan Global Capital, agreed to sell 80% stake in their education loan arm Avanse Financial Services Ltd to private equity firm Warburg Pincus.
Over the past few months, Wadhawan and its flagship unit Dewan Housing have been selling their assets to pare debt and ease investor concerns related to a liquidity crunch that plagued the broader non-banking financial sector after the defaults by Infrastructure Leasing & Financial Services Ltd last year. Dewan Housing has also been accused of financial misconduct but has denied the allegations.
RattanIndia may hive off solar biz
US-based private equity firm Global Infrastructure Partners (GIP) is in late-stage discussions to acquire the solar portfolio of power, cement and mining conglomerate RattanIndia Power for an enterprise value of $300 million (Rs 2,000 crore), a report in The Economic Times stated, citing multiple people privy to the development.
GIP has completed its due diligence process and the entities are presently drawing up documentation for the deal, one of the persons mentioned above told ET.
RattanIndia has more than 300 megawatts of solar portfolio projects, including ground mounted and rooftop panels, said the report.
RattanIndia owes its lenders about Rs 8,074.5 crore in dues. As part of its move to pay back creditors, Aditya Birla ARC Ltd, in February, agreed to acquire part of the firm’s debt for a power plant.