ICICI Bank proposes to acquire Transamerica Apple Finance

Mumbai: ICICI Bank proposes, subject to Reserve Bank of India approval, to acquire the entire paid-up share capital of Transamerica Apple Distribution Finance Pvt Ltd (TADFL), a financial services company.

The cost of acquisition is estimated at Rs 74 crore and would be finalised on completion of audit of the accounts of TADFL for the period April-November 2002, or such other period as agreed.

TADFL is primarily engaged in providing distribution financing in the two-wheeler and tractor industry segments, and loans to retail customers for purchase of two-wheelers. Retail finance is a key focus area for ICICI Bank and the acquisition of TADFL is expected to supplement ICICI Bank’s retail franchise.

TADFL is a 70:30 joint venture between Transamerica Distribution Finance (TDF), USA, and Apple Credit Corporation Ltd (Apple). TDF is a wholly owned subsidiary of Transamerica Finance Corporation (TFC), USA, which in turn is a subsidiary of Aegon NV, a Netherlands-based global insurance major.

JM Morgan Stanley Private Ltd was the financial advisor to TDF on this transaction. The total assets of TADFL were Rs 217.9 crore at 31 March 2002. As per the audited accounts for the year ending 31 March 2002, TADFL’s profit after tax was Rs 4.6 crore.

ICICI Bank is the largest private sector bank in Indian and a leading player in the retail finance market. Total assets of ICICI Bank were Rs 1,04,110 crore on 31 March 2002. The bank has a network of over 400 branches and extension counters, and 1,250 ATMs.