ADAG's Reliance Money buys 51-per cent stake in No1 Currency

13 March 2009

Anil Dhirubhai Ambani Group firm Reliance Money Express today said it was acquiring a majority stake in UK-based money transfer firm No1 Currency.

"The company would acquire 51 per cent of No1 Currency and the deal will be completed most probably by the end of this month,'' Reliance Money Express director and chief executive officer Sudip Bandyopadhyay said.

''We aim to expand the number of outlets from the present nearly 300 to 500 within the next six months," he added. Reliance Money Express is a money transfer service provider and is a part of Reliance Capital.

Bandyopadhyay declined to divulge any financial details about the acquisition. However, a report in The Economic Times puts the value of the deal at Rs100 crore ($19.3 million), adding that it would give Reliance Money Express access to large money transfers by expatriate Indians.

The acquisition would mark the company's foray into the international foreign exchange arena. For taking the Reliance Money brand to overseas market, the name of the company would be changed to Reliance No 1 Currency, Bandyopadhyay said.

The due diligence for the deal was performed by global consultancy Ernst & Young, while the advisor for the deal was Elara Capital, London.