CCI approves deal involving stake purchase in Hero FinCorp

The Competition Commission of India (CCI) on Monday approved the acquisition of stake in Hero FinCorp Limited by a Singapore-based affiliate of Apollo Global Management.

AHVF II Holdings Singapore II Pte. Ltd will buy certain compulsorily convertible preference shares of Hero FinCorp, the lending arm of the Hero Group, under the proposed transaction.

"The proposed combination relates to the subscription of certain compulsorily convertible preference shares by acquirer (AHVF II Holdings Singapore II Pte. Ltd) of target  (Hero FinCorp Limited), which upon conversion will represent a certain shareholding in HFL," CCI in an official statement.

The acquirer is owned by investment funds managed by affiliates of Apollo Management, L.P. Apollo Management, L.P., its affiliates, and investment funds managed by its affiliates.

Apollo Management L.P. is a limited partnership formed in accordance with the laws of the State of Delaware, USA, explained CCI. Investment funds managed by affiliates of Apollo invest in companies and debt issued by companies involved in various businesses.

CCI further said that Hero FinCorp is registered as a systemically important non-deposit taking non-banking finance company with the Reserve Bank of India. Hero FinCorp's sole wholly-owned subsidiary, Hero Housing Finance Limited, offers a range of housing loans and loans against property to various segments of society.

Deals beyond a certain threshold require the approval of CCI, which keeps a tab on unfair business practices in the marketplace.

(With PTI Inputs)

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