Nomura in talks on Enam, sees flow of big M&A deals

Nomura in talks on Enam, sees flow of big M&A deals

Reuters

Tokyo: Nomura Holdings is in talks to buy a stake in unlisted Indian financial services group Enam to help it expand in Asia’s third-biggest economy, an executive at Japan’s largest brokerage said on Friday, 14 September.

Executive vice-president Hiromi Yamaji also told Reuters that its investment banking business has seen a considerable increase in deals in its pipeline that are larger than 100 billion yen ($870 million) including cross-border deals.

There were reports in June Nomura may buy a 35% stake in Enam for Rs14 billion (Rs1,400 crore, $348 million) in what would be Nomura’s second attempt to forge a joint venture with an Indian firm following a failed attempt in the 1990s with UTI Securities.

Yamaji said Nomura was exploring various options in India including Enam.

“We are still in various negotiations. It’s not just Enam. I don’t know at this point when that will be announced," he said.

Nomura posted a quadrupling of net profit in the April-June quarter, boosted by a handful of big deals in its investment banking division including a share issue by air conditioner maker Daikin Industries Ltd.

While Japanese companies are wary of issuing stock amid the recent turmoil in global financial markets, they are actively seeking M&A deals such as hiving off non-core assets for sale or buying strategic assets to spur growth, Yamaji said.

“Our M&A section is really busy right now. The deals are flowing in. And it’s not just the number of deals, there are a fair amount of big deals, including those above 100 billion yen," he said.

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