FIMBank, the Malta-based trade finance bank, has completed the sale of its 38.5% stake in GTF, an Indian factoring company, to the State Bank of India (SBI).
FIMBank acquired GTF in December 2004, and according to the bank the sale represents the natural investment cycle in GTF from start-up to maturity. It is also recognised as the first realisation of a strategic asset in FIMBank’s growing portfolio of start-up factoring companies around the world.
The sale was executed for a gross consideration of US$54.1mn, 3.3 times over the asset’s book value.
“I am pleased to announce this important strategic move for the FIMBank group, which brings the full value realisation of a mature asset and additional funds for FIMBank’s future growth, both for its core trade finance business and its portfolio of international factoring start-ups,” comments Margrith Lutschg-Emmenegger, FIMBank’s president.
“This sale, combined with the US$25mn rights issue executed in December 2007, results in an almost doubled capital base for the FIMBank group.
“In an environment of much reduced M&A activity and global credit turmoil, the sale of GTF also evidences the liquidity of FIMBank’s investment portfolio, as well as the effectiveness of the group’s equity investment strategy.”
At the end of 2007, FIMBank had total assets of US$571mn, and a stock market capitalisation of over US$200mn.
Reader Comments