Abu Dhabi’s International Holding Company (IHC) agreed to acquire a 41.2% stake in Mumbai-listed mortgage-focused Sammaan Capital for around USD 1 bn, according to a statement and details of the transaction (pdf). The transaction will see the bank issue 330 mn shares at INR 139 per share — an 18% reduction from its last closing price.

It will also trigger a mandatory tender offer for the acquisition of an additional 26% stake in the company at the same price. The transaction is still subject to regulatory approvals from the Reserve Bank of India and the Competition Commission of India.

Sammaan serves 1.6 mn customers through 220 branches nationwide, providing home loans in the affordable housing segment as well as working capital loans for MSMEs and small businesses, according to its website. Sammaan and its wholly owned subsidiary Sammaan Finserve reported INR 623.5 bn in assets under management (AUM) as of March. The company is also realigning toward an asset-light retail model built around co-origination and sell-down strategies, and is targeting consolidated AUM of INR 1 tn.

Part of a wider investment push into India: IHC is planning to pour up to USD 110 bn in the country over the next five years, with another USD 50 bn earmarked for countries in the Commonwealth and Far East regions as part of a wider global push. The investment giant funneled USD 2 bn in Adani Group companies in 2022 before announcing it would trim exposure in Adani Green Energy and Adani Energy Solutions. Earlier in April, IHC nabbed a minority stake in Haldiram Snacks Foods.

ADVISORS- Jefferies and Citi Bank are reportedly advising Sammaan Capital.

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