Temasek, Others In Talks To Buy Stake In First Leasing

Temasek, Others In Talks To Buy Stake In First Leasing

By Reuters

  • 10 Jun 2011

Singapore's sovereign fund Temasek Holdings, Swiss Re and India's Tata Capital are in final-stage talks with Indian financial services firm First Leasing Co. for a 27.3 per cent stake.

A deal could be signed in a month, said the sources, who declined to be named as they were not authorised to speak to the media before a public announcement.

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 shares were trading 4.2 per cent higher at 102.30 rupees on Friday. Based on Thursday's closing, a 27.3 per cent stake would be valued at 610 million rupees ($13.6 million).

First Leasing, Swiss Re and Temasek were not immediately available for comment. Tata Capital declined comment.

First Leasing, which mainly focused on corporate financing, also provides lease assistance and funding. Its clients include Citibank, Johnson & Johnson and Volvo, according to Thomson Reuters data.