PAG to buy Edelweiss Financial's wealth, investment banking businesses for nearly Rs 2,500 crore: Report
The deal between PAG and Edelweiss Financial Services might be formally announced later this week.
August 26, 2020 / 03:34 PM IST
Alternative asset management company Pacific Alliance Group (PAG) could pick up a majority stake in the wealth, investment banking and capital markets businesses of Edelweiss Financial Services for up to Rs 2,500 crore.
Asia-focused PAG might purchase a 51 percent stake in a new entity that will be spun off from Edelweiss Global Investment Advisors (EGIA), for Rs 2,200-2,500 crore, according to a report by The Economic Times.
The deal, which might be formally announced later this week, will be PAG's first private equity investment in India, the report said.
Moneycontrol could not independently verify the story.
PAG and Edelweiss declined to comment when contacted by The Economic Times.
Edelweiss is expected to maintain a 35-37 percent stake in the entity while existing investors Sanaka Capital and Kora Management will own a combined 12 percent, the report said.
In 2019, Sanaka Capital and Kora Management had invested Rs 1,160 crore in EGIA.
The businesses that will be carved out will eventually get listed, sources told the publication.
The move is also a part of Edelweiss' efforts to revamp the company after IL&FS defaulted on crucial payments in 2018.