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Divestment of asset finance biz to help L&T Finance strengthen balance sheet: Motilal Oswal

BL Mumbai Bureau December 24 | Updated on December 24, 2021

HSBC Asset Management is going to fully acquire L&T Investment Management Limited

The divestment of its asset finance business will help L&T Finance Holdings further strengthen its balance sheet for the lending business, said a report by Motilal Oswal.

“Divestment of the Asset Management business to HSBC AMC is in line with LTFH’s objective of unlocking value from its subsidiaries and strengthening its Balance Sheet for the Lending business,” it said.

Given its healthy capital adequacy of over 25 per cent and expected proceeds from the sale of the MF business, LTFH is now in a position to aggressively push forward towards its stated long-term goal of retailisation of its lending portfolio, it further said.

In a late evening announcement on Thursday, HSBC Asset Management (India) and LTFH said they have entered into a definitive agreement whereby HSBC Asset Management will fully acquire L&T Investment Management Limited (LTIM) for $425 million.

LTFH scrip was down 4.48 per cent down in early morning trade on BSE on Friday.

Published on December 24, 2021

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