The investment arm of CreditAccess Asia N.V, CreditAccess Grameen Ltd is reportedly deciding to buy Madura Microfinance.
The company plans to acquire Madura Microfinance and merge it with itself to consolidate its leadership position, Microfinance firm, CreditAccess Grameen Ltd (CAGL) said in an interview with The Economic Times.
According to the cited a media report the micro finance company proclaimed that it will acquire 100 per cent shares in Madura in two steps. In the primary move, it will buy nearly 76.2 per cent shares from stakeholders of Madura in an all-cash deal. In the second move, Madura will collaborate with CreditAccess and acquire its shares.
The acquisition will provide us with significant benefits in the form of better competitive positioning, larger business scale, deeper presence, portfolio diversification, optimum leverage, and better profitability, while maintaining our quality of operations," Udaya Kumar Hebbar, managing director at CAGL, said in an interview with the cited media agency.
Since the past few months, promoters of Madura have been looking to quit the company. In the previous year, Federal Bank had shown interest in acquiring the microfinance company.
We are excited to become part of the CAGL family, Thiagarajan, Chairman and MD at Madura, said in an interview with the cited media agency.