Postbank to sell Indian subsidiary Deutsche Postbank Home Finance Ltd.
Postbank's executive bodies today resolved to finalize an agreement with a buyer consortium led by Dewan Housing Finance Ltd. to sell Postbank's Indian mortgage lending subsidiary Deutsche Postbank Home Finance Ltd. (DPHFL). The purchase price will be in a range between INR 10.54 and 10.79 billion (corresponding to approximately €173 to 177 million at current exchange rate).
Postbank's sale of its Indian subsidiary is in line with the strategic focus that it defined in 2009 in its Postbank4Future program. Among other things, this lays down that Postbank will focus largely on the German market in the future in its core retail banking business. With Dewan Housing Finance, Postbank has found a purchaser who will further build on DPHFL's business model and previous growth history, and who ideally complements the subsidiary's sales and customer structure.
DPHFL became a member of the Postbank Group when BHW Holding AG was acquired in 2006. The company was established in 1995 and is a successful player in the Indian private mortgage lending market with around 40 branches and 332 mobile sales agents. DPHFL has a workforce of 331 permanent employees and total assets of approximately €831 million, of which the biggest part is attributable to home finance.
The transaction is expected to close in the course of the first quarter of 2011 and is subject to approval by the National Housing Bank, the Indian supervisory authority. Postbank expects the transaction to produce an after-tax earnings contribution in the mid-double-digit million euro range.
Deutsche Postbank Home Finance Ltd.'s financial key performance indicators as of September 30, 2010:
|* Exchange rate INR/EUR 61.00|
|Total assets:||€831 million|
|New mortgage lending business:||approx. €165 million*
Year-on-year growth: 31%
|Earnings contribution (pre-tax) in
the Retail Banking segment between
January 1, 2010 and September 30, 2010: