Mumbai, Jan. 4: ICICI Bank will buy Transamerica Apple Distribution Finance (TADFL), an auto distribution finance company, in a Rs 74-crore all-cash deal. The acquisition will strengthen the bank's retail franchise, particularly in the two-wheeler finance segment.
The country’s leading private sector bank today said the cost of acquisition would be finalised on completion of audit of the accounts of TADFL for the period of April-November 2002, or such other period as agreed.
TADFL is a 70:30 joint venture between Transamerica Distribution Finance (TDF), USA, and Apple Credit Corporation. TDF is a wholly-owned subsidiary of Transamerica Finance Corporation (TFC), which in turn is a subsidiary of Aegon NV, a Netherlands-based global insurance major.
TADFL has assets worth Rs 217.9 crore as on March 31, 2002. As per the audited accounts for the year ended March 31, 2002, the company’s net profit was Rs 4.6 crore.
The company provides distribution financing for two-wheelers and tractors and loans to retail customers for purchase of two-wheelers. Sources said the company, headquartered in Mumbai and present in 20 states, has an exclusive tie-up with two-wheeler manufacturers like TVS Motor Company.
ICICI Bank officials added that the acquisition would supplement its leadership position in retail finance. The bank's total assets were placed at Rs 1,04,110 crore as on March 31, 2002.
The bank had identified retail banking as a major growth area and hopes to lead in all product segments in a couple of years. While making a steady progress in the housing finance sector, the bank is leveraging its strong corporate relationships, brand strength and technology, to lead in the retail segment.