By Our Correspondent
NEW DELHI: The Competition Commission of India (CCI) approves acquisition of a minority stake in Aditya Birla Fashion and Retail Limited (ABFRL) by Flipkart Investments Private Limited (FIPL).
FIPL is a newly incorporated company and is a wholly owned subsidiary of Flipkart Private Limited (FPL). FPL belongs to the Walmart Group, which comprises Walmart Inc. (Walmart) and its affiliates. The Walmart Group undertakes various business activities in India, such as wholesale trading of products, providing e-commerce marketplace services and digital payments services.
ABFRL is a public limited company incorporated in India and is part of the Aditya Birla conglomerate. ABFRL (including through its subsidiaries) is engaged in the business of manufacturing and retailing branded apparels, footwear and accessories, through its retail stores, multi-brand outlets, departmental stores, online retail platforms and e-commerce marketplaces, across India.
The proposed combination relates to acquisition by FIPL of a minority shareholding of 7.8%, on a fully diluted basis in ABFRL, by way of subscription equity shares.Detailed order of the CCI will follow.
The CCI has also approves the acquisition of stake by Axis Bank Limited, Axis Capital Limited and Axis Securities Limited in Max Life Insurance Company Limited.Axis Bank Limited provides services in retail banking, which includes retail lending and retail deposits, wholesale banking, payment solutions, wealth management, forex and remittance products, distribution of mutual fund schemes and distribution of insurance policies.
Axis Capital Limited is engaged in the business of providing focused and customized solutions in the areas of investment banking and institutional equities.Axis Securities Limited is engaged in the business of broking, distribution of financial products and advisory services.
Max Life Insurance Company Limited is Life Insurance company registered with Insurance Regulatory and Development Authority of India (IRDAI). It is engaged in the business of providing life insurance and annuity products and investment plans in India.
The proposed combination approved by CCI relates to increase of shareholding in Max Life Insurance Company Limited (Target) to approximately 9.9% by Axis Bank Limited and acquisition of 2% and 1% shareholding in the Target by Axis Capital Limited and Axis Securities Limited respectively.Detailed order of the CCI will follow.
It also approves acquisition of Altico Capital India Ltd (Altico) by Ares SSG Capital Management (Singapore) Pte. Ltd (Ares SSG) under Section 31(1) of the Competition Act, 2002, today.The Proposed Combination relates to the acquisition of Altico’s loan assets by India Special Situations Scheme II (“ISSS II”), Investment Opportunities V Pte. Limited (“IOV”) and Assets Care & Reconstruction Enterprise Ltd (“ACRE”) which are the entities identified by Ares SSG.
ISSS II is a scheme of the India Special Situations Trust, an Alternative Investment Fund, registered with the Securities and Exchange Board of India (“SEBI”) under the SEBI (AIF) Regulations, 2012.IOV is registered as Foreign Portfolio Investor (“FPI”) under the SEBI (FPI) Regulations, 2019 and holds a Category I Foreign Portfolio Investor license.
ACRE is an Asset Reconstruction Company (“ARC”) under the provisions of the Securitization and Reconstruction of the Financial Assets and Enforcement of Security Interest Act, 2002, registered with the RBI. It is engaged in asset reconstruction and acquisition and revival of non-performing financial assets from banks and other financial institutions.
Ares SSG Group is an alternative asset management firm, founded in 2009, focused on investing in the Asia Pacific region, and is one of Asia’s leading alternative credit asset managers.
Altico is an NBFC, which was engaged in providing loans and financing to small and medium sized corporates in the real-estate sector in India.Detailed order of the CCI will follow.
