|
||
|
||
Home >
Money > Business Headlines > Report November 18, 2002 | 1200 IST |
Feedback
|
|
Tata Fin, Telco arm may merge
Reeba Zachariah in Mumbai The Tata group is chalking out a strategy for the embattled Tata Finance, which will see the automobile finance company work with the Bureau of Hire Purchase, the automobile finance arm of Tata Engineering. Group sources said this was the first step towards a possible merger of Tata Finance with the Bureau of Hire Purchase, once the residual businesses of Tata Finance and its subsidiaries - credit cards, corporate finance, home loans, windmills, among others - were divested. Tata Finance has started working out the synergies with the Bureau of Hire Purchase in the area of commercial and car financing. While Tata Finance is into financing two-wheelers, trucks and cars, the Bureau of Hire Purchase is only into financing only Telco products. A Tata group source said: "The Bureau of Hire Purchase's and Tata Finance's asset finance businesses compete. As both are big financiers of Telco vehicles, it makes sense to synergise and share operations." Tata Finance had earlier said the company would go back to where it started, that is just automobile financing, and would divest interests in non-related areas. The company has discontinued fresh financing activities. It was negotiating with parties for the sale of its lease portfolio, but could not find a buyer. Now Tata Finance is planning to "run down" its portfolio through closure of outstanding leases or prepayment. At present, it has a lease portfolio of Rs 300 crore (Rs 3 billion). Tata Finance, through Niskhalp Investments, holds substantial investments in various companies. These investments, worth Rs 75 crore (Rs 750 million), would be sold off as and when the market allowed it, Tata officials said. Tata Finance is in negotiations on the sale of its credit card division to ICICI Bank. The Industrial Development Bank of India is said to be close to taking over Tata Finance's home finance business. Tata Finance holds a 63 per cent stake in Tata Home Finance, with the remaining 37 per cent being held by UK-based Abey National Plc. ALSO READ:
|
ADVERTISEMENT |