HSBC Holdings to purchase 73.2% of IL&FS Investmart of India for $235 Mln cash; Reports

Posted on Saturday, May 17, 2008 8:35 AM

(RTTNews) - HSBC Holdings Plc (HBC, HSBA.L) announced that it plans to acquire 73.2% of Indian brokerage firm, IL&FS Investmart Ltd., for $235 million cash, according to sources. The company would acquire 43.85% stake of IL&FS from E*Trade Financial Corp.'s Mauritius unit and the rest of the stake from the brokerage's founder, Infrastructure Leasing and Financial Services Ltd., for INR 200 a share. Sandy Flockhart, CEO of HSBC, Asia-Pacific, said that this investment is of strategic importance to the company as it gives a foothold in one of the largest retail broking markets in the world. The company would also pay an additional $19.4 million to the brokerage, as part of a 3-Year non-compete agreement and make an offer to buy an additional 20% of IL&FS from other shareholders. For comments and feedback: contact editorial@rttnews.com