New Delhi: Infrastructure and finance company IL&FS on Tuesday said it has exited from joint venture ORIX Auto Infrastructure Services (OAISL) by selling its 50% stake to partner ORIX Corporation for undisclosed amount.
OAISL, which offers a full range of auto infrastructure services business including commercial vehicle finance and car rental, has assets around Rs 850 crore across its various verticals.
IL&FS Group has entered into a share purchase agreement with Japanese partner, and pursuant to the foregoing, ORIX Corporation would acquire shareholding of IL&FS and its affiliates in OAISL, joint statement said.
With this ORIX Corporation stake would increase to 99.95% of the paid-up equity share capital of OAISL.
The JV with ORIX Corporation of Japan was set up in 1996.
ORIX Corporation will ensure that the company has the appropriate amount of capital to support the future growth of the business, it said.
The acquisition of OAISL by ORIX Corporation would add significant value to OAISL and its 100% subsidiary, viz; OAIS Auto Financial Services Limited (an NBFC engaged in leasing and commercial vehicle financing) in terms of growing a diversified product portfolio with technical support and global linkages with ORIX’s businesses worldwide, it said.
It may be noted that vehicle financing and allied products are a core activity of ORIX Corporation, it added.
ORIX Corporation is a diversified financial conglomerate, with assets over $80 billion and is listed on the Tokyo and New York Stock Exchange.
ORIX Corporation has been a partner with IL&FS since 1993, and is the second largest shareholder of IL&FS.