Shriram Finance Shareholders Approve Proposals for $4.4 Billion MUFG Stake Deal
📰 Shriram Finance Shareholders Approve MUFG Deal Proposals
India's Shriram Finance announced on Wednesday that its shareholders have approved three key proposals related to the non-bank lender's agreement with Japan's MUFG.
The approvals pave the way for the completion of the strategic transaction.
The deal involves MUFG acquiring a 20% stake in Shriram Finance through a preferential allotment for approximately \$4.4 billion.
The three proposals approved by the shareholders included:
* The preferential issue of shares to MUFG Bank.
* Granting special rights to the Japanese investor, including the right to nominate two directors to the board.
* A one-time non-compete fee of \$200 million to be paid to the Shriram Ownership Trust, the promoter entity.
This investment is one of the largest cross-border financial sector deals in India, significantly boosting Shriram Finance's capital base.