Temasek, Tata Cap eye 27.3% in First Leasing

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fe Bureau: Mumbai, Jun 11 2011, 19:35 IST

Singapore-based Temasek Holdings, Swiss Re and Tata Capital are in talks with financial services firm First Leasing for 27.3% stake, according to agencies. The deal is likely to be announced in a month. According to agency reports, the transaction could be at a substantial premium to the current market price.

First Leasing shares closed up 5.45% at Rs 103.5 at the Bombay Stock Exchange in Friday's trade. Based on the closing price the deal is valued at approximately Rs 64 crore.

First Leasing, Swiss Re and Temasek were not immediately available for comment. Tata Capital declined to comment. Bid prices were not immediately available, but the sources said the transaction could be at a substantial premium to the current market price.

First Leasing provides corporate financing along with consumer credit and fixed deposits. Its clients include Citibank, Johnson & Johnson and Volvo. It reported FY11 revenues worth Rs 177 crore.

Temasek Holdings manages a corpus of S$186 billion with focus on Asia and Singapore. Tata Capital, a PE arm of Tata Group had recently announced commitments $800 million for its five funds with a target of $1 billion by 2011-end. It invests in sectors across consumer, technology, auto components, engineering and healthcare sector. Swiss Re with presence across 20 countries in the business of providing insurance and reinsurance globally.

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