SoftBank may not seal deal with Piramal Group: Report

Piramal

PiramalMasayoshi Son’s SoftBank may drop their plans to invest in the Piramal Group’s financial services arm, Piramal Capital and Housing Finance, on irreconcilable differences, reports the Economic Times.

The Mumbai-based chain of companies was in discussion over a deal that would have resulted in the separation of its housing division and creation of a special entity in venture with SoftBank with the Mayer’s investment of around $1 billion for a significant stake, reported the English Daily.

In its July 15 edition, ET had reported that the deal would possibly happen on one condition if Piramal Group moves away from wholesale loans to consumer lending. 

This reportedly emerged as the biggest point of disagreement between the two, forcing the SoftBank Vision Fund’s investment committee to call off the deal.

“The Piramal Group has traditionally been focused on wholesale or corporate loans,” reports the daily, quoting one of the persons close to the deal.

“Shifting almost completely to consumer was not something the leadership was comfortable with,” reported ET.

The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the NBFCs and Insurance industry. Join Us for Elets FSI Virtual Conclave and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.