Tourism Finance Corp Advances in Acquisition of Cosmea Investment
Tourism Finance Corporation of India Limited's (TFCI) Board has given in-principle approval to enter an exclusive term sheet with Cosmea Investment Holdco Private Limited for acquiring 100% of Cosmea Investment Private Limited (CIPL) and its subsidiaries. The acquisition targets CIPL's interests in asset reconstruction, stock broking, wealth management, and investment advisory. The deal is subject to due diligence, finalization of terms, and regulatory approvals. TFCI plans to use an affiliate or SPV for the acquisition, potentially expanding its financial services portfolio.
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Tourism Finance Corporation of India Limited (TFCI) has taken a significant step towards expanding its financial services portfolio. The company's Board of Directors has granted in-principle approval to enter into an exclusive term sheet with Cosmea Investment Holdco Private Limited (CIHL) for the acquisition of Cosmea Investment Private Limited (CIPL) and its subsidiaries.
Key Details of the Proposed Acquisition
- Target: 100% shareholding of Cosmea Investment Private Limited (CIPL)
- Scope: Includes specified wholly-owned subsidiaries, step-down subsidiaries, and trusts of CIPL
- Acquirer: An affiliate or Special Purpose Vehicle (SPV) of TFCI
Business Verticals of the Target Company
The target company, CIPL, has interests in various financial services sectors:
- Asset reconstruction
- Stock broking
- Wealth/portfolio management
- Investment advisory
Conditions for the Acquisition
The proposed acquisition is subject to several conditions:
- Satisfactory completion of detailed financial, legal, tax, and corporate due diligence
- Verification of all assets and liabilities
- Finalization of share purchase consideration and payment mode
- Execution of definitive share purchase and related agreements
- Receipt of requisite regulatory approvals
- Compliance with statutory requirements, including fit and proper criteria
Board Meeting Details
| Aspect | Details |
|---|---|
| Date of Board Meeting | October 6 |
| Meeting Commencement | 4:30 PM |
| Meeting Conclusion | 5:50 PM |
TFCI has stated that it will make further disclosures in accordance with applicable laws as material developments occur in this acquisition process.
This strategic move by Tourism Finance Corp indicates its intent to diversify and strengthen its position in the financial services sector. The acquisition, if completed, could potentially enhance TFCI's capabilities in areas such as asset reconstruction, stock broking, and wealth management, complementing its existing tourism finance operations.
Investors and stakeholders should note that this is an initial approval, and the final acquisition is contingent on various factors and approvals.
Historical Stock Returns for Tourism Finance Corporation of India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.39% | +5.03% | +8.92% | +114.96% | +156.02% | +971.15% |
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