IL&FS exit from Japan’s ORIX Auto

by khalid on 22/09/2011 · 0 comments

Indian Infrastructure & finance company IL&FS has exited from the JV of Japan’s ORIX Auto Infrastructure Services (OAISL). Orix Corporation has an equal joint venture in OAISL with IL&FS group. The Tokyo based firm Orix Corporation will buy the remaining 50 % stake of ORIX Auto in its deal with IL&FS though the value of the deal has not been disclosed.

OAISL has an auto infrastructure services business which includes car rental & commercial vehicles financing. IL&FS Group has entered with a share purchase agreement with ORIX Corporation to acquire the shares of OAISL from IL&FS and associates. This will increase the stake of ORIX Corporation to 99.5 percent in OAISL.ORIX Auto Infrastructure Services JV was set up in the year 1996 with Japan’s ORIX Corporation. After IL&FS exit ORIX Corporation will take care of the capital required for the future growth of OAISL businesses.

This acquisition by ORIX Corporation will support OAISL to diversify its product portfolio worldwide with its global linkages and technical support. OSAIS Auto Financial Services Ltd is an NBFC which provides Leasing & Commercial Vehicle Financing. The company has assets worth rupees 850 crore and it is valued at 90 million dollars. Orix Auto has tied up with auto companies like BMW to render leasing services of their cars in the Indian market. Orix Auto is a Mumbai based company which has its branches in Kolkata, Pune, Bangalore, Chennai, Hyderabad, New Delhi, and Jaipur.

Bell the Bull says: Japan’s ORIX Corporation is a partner with IL&FS since 1993 and has been the single largest share holder with 24% share in IF&LS.

Related Posts Plugin for WordPress, Blogger...

Leave a Comment

Previous post:

Next post: