Future Capital Holding & Centrum Capital Ltd have decided on the rearrangement of share holding on their two existing joint ventures, FCH Centrum Wealth Managers Ltd & FCH Centrum Direct Ltd
Future Capital Holding (FCH) & Centrum Capital Ltd (CCL) have decided on the rearrangement of share holding on their two existing joint ventures, FCH Centrum Wealth Managers Ltd (FCH CWML) & FCH Centrum Direct Ltd (FCH CDL).
As per the new arrangement, Centrum Capital Ltd will buy 50% stake currently held by FCH in the entity FCH Centrum Direct Ltd for a consideration of Rs100 crore. In 2008, FCH had invested Rs75 crore for 50% stake in this joint venture. Post this transaction, Centrum Capital Ltd will hold 100% stake of FCH Centrum Direct Ltd. Centrum Direct Ltd is primarily into the business of forex money changing and travel solutions.
As part of the same arrangement, FCH will buy out 50% stake of FCH Centrum Wealth Managers Ltd from CCL at a consideration of Rs1 crore. In 2008, FCH had invested 50% stake in this joint venture with CCL for Rs25 crore. Post this transaction, FCH will hold 100% of this entity. FCH Centrum Wealth Managers Ltd is primarily in the business of retail wealth management.
The boards of FCH & CCL have independently approved these transactions. The transactions are subject to regulatory approvals. Both Groups have expressed a strong willingness to explore strategic opportunities to work together in the future.
V Vaidyanathan, vice chairman & managing director, Future Capital said, "We are excited about building an excellent broking and wealth management franchise brought to us through the acquisition of FCH Centrum Wealth Managers Ltd. Our exit from the second joint venture of FCH Centrum Direct Ltd is in line with our already stated strategy in this matter."
Chandir Gidwani, chairman, Centrum Capital Ltd said, "We will continue to build on our successful and market leading franchise in the forex money changing & travel vertical. This business forms a part of the core of our retail financial services strategy. We will continue to invest and grow our wealth management and high net worth broking and distribution businesses on the Centrum Broking platform. We are excited about the market potential for retail financial services in India and have drawn up an ambitious plan to be a leading player in this space."
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