Baring EQT To Acquire HDFC's Credila
As per a variety of sources, Baring Private Equity Asia (BPEA) EQT is set to acquire Credila Financial Services, the educational loan arm of Housing Development Finance Corp (HDFC), for $1.3-1.5 billion (Rs 10,000 crore-12,000 crore), outbidding private equity rivals Carlyle, TA Associates, Blackstone, and CVC Capital.
The buyout fund will purchase 90% of the company, with the housing finance company keeping a 10% stake that it may sell over the next two years. A formal announcement is expected by the end of June, ahead of the massive merger of HDFC Bank and HDFC to form the world's fourth-largest bank. According to the individuals cited above, both parties are finalising legal documentation.
Earlier this year, HDFC hired Jefferies to launch a formal sale process. It attempted to sell a minority 10-15% stake in Credila at least three times in the past, but those bids were unsuccessful.
According to the people cited above, Baring has formed a consortium with ChrysCapital for the transaction. BPEA EQT was unable to be reached for comment. HDFC did not respond to requests for information.
BPEA EQT became the world's third-largest private equity fund group after a $7.5 billion merger in 2022. BPEA raised $11.2 billion for its latest fund, BPEA Fund VIII, with a focus on Asia buyouts, the same year.
Anil and Ajay Bohora founded Credila in 2006.