JM Financial board okays plan to consolidate debt, distressed credit business under one platform
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JM Financial (JMFL) has agreed to consolidate its holding in wholesale debt syndication and distressed credit business under one platform. In a meeting on Saturday, the company's board of directors approved a proposal in which JM Financial will acquire 42.99% stake in JM Financial Credit Solutions Limited (JMFCSL) for a consideration of approximately Rs 1,282 crore. Post the transaction, the stake held by JMFL in JMFCSL shall increase from 46.68% to 89.67%. The board also approved acquisition of 71.79% stake in JM Financial Asset Reconstruction Company (JMFARC) by JMFCSL from JMFL for a consideration of approximately Rs 856 crore, a company release said. Post-transaction the stake held by JMFCSL in JMFARC will increase from 9.98% to 81.77%. The proposed transaction will result in a net cash outflow of approximately Rs 426 crore from JMFL and will be funded from surplus cash. The proposed transaction will happen subject to applicable r...