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Oaktree seeks to insure DHFL offer with AIF plan
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AIF is the regulatory term for pooled private investment vehicles like private equity and venture capital funds.
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If Oaktree eventually acquires DHFL, the interest in the insurance company which would change hands with the parent DHFL can be housed in the AIF vehicle without breaching FDI norms.
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Mumbai: American asset manager Oaktree Capital, which is in a fierce race to acquire the bankrupt mortgage lender Dewan Housing Finance Corporation (DHFL), plans to use an alternative investment fund (AIF) for taking over
DHFL’s life insurance venture Pramerica and comply with India’s foreign ownership rules in the insurance industry.
DHFL race: Piramal holds edge over Oaktree due to higher upfront cash, insurance tangle for foreign firms
Piramal Enterprises offers at least Rs 1,000 crore higher upfront payment than US asset manager Oaktree for DHFL in fourth round of auction. India’s FDI laws complicate Oaktree bid as DHFL has an insurance business.
DHFL (File Image: PTI)
Ajay Piramal-led Piramal Enterprises has edged out rival suitor Oaktree Capital in the auction to purchase the assets of Diwan Housing Finance Ltd (DHFL) by submitting the highest upfront cash payment, the bidding proposition preferred by the bankrupt company’s lenders.
Piramal Enterprises, a diversified conglomerate, offered Rs 12,700 crore as cash upfront trumping the Rs 11,646 crore offer from American asset manager Oaktree, multiple persons familiar with the matter told Moneycontrol. Piramal and Oaktree trumped Adani Properties, the remaining suitor in the fray, in the fourth round of bids on Monday.
Synopsis
AIF is the regulatory term for pooled private investment vehicles like private equity and venture capital funds.
Getty Images
If Oaktree eventually acquires DHFL, the interest in the insurance company which would change hands with the parent DHFL can be housed in the AIF vehicle without breaching FDI norms.
Mumbai: American asset manager Oaktree Capital, which is in a fierce race to acquire the bankrupt mortgage lender Dewan Housing Finance Corporation (DHFL), plans to use an alternative investment fund (AIF) for taking over
DHFL’s life insurance venture Pramerica and comply with India’s foreign ownership rules in the insurance industry.