Murugappa Group buys 37% stake in DBS Bank

Murugrappa Group on Tuesday said it has bought 37.48 per cent stake in Singapore based DBS Bank making it to hold controlling stake in their joint venture company Cholamandalam DBS Finance Ltd.

Murugappa Group entered into partnership with DBS Bank, Singapore in 2005 to enter into consumer loan business. The Murugappa Group was having an equal stake in the non-banking finance company, while the remaining 25 per cent held by the public.

The joint venture between the Murugappa Group and Singapore's largest bank was formed in 2005. As part of restructuring their business, the decision was taken on the acquisition of 37.48 per cent after holding discussions, a joint company release here said.The stake is being purchased by Tube Investments of India and New Ambadi Estates Pvt Ltd, group firms of Murugappa Group.

The companies clarified that DBS and Murugappa Group would remain open to future collaboration opportunities in areas such as wealth management, distribution of financial products. The transaction was expected to be completed by April 12.

"The acquisition of stake and the investment made by the Group signifies our firm intentions and focus for NBFC business.We will grow this business aggressively exploiting the vast opportunity and leveraging on our established relationships with Dealers, OEMs and the group's large presence in the agri-business", Murugapa Group Executive Chairman A Vellayan said.

The change in the joint venture would be reflected in the names of the company and its subsidiaries upon completion of transaction, the release added.