Religare Enterprises Ltd has informed BSE regarding a Press Release that Religare Capital Markets Ltd (wholly owned subsidiary of the Company) has received approval from the Financial Services Authority (PSA) for a change in control of Hichens, Harrison & Co Plc, UK.

Press Release:

“Religare Capital Markets international (UK) Ltd an indirect wholly owned subsidiary of Religare Capital Markets Ltd (RCML) has received approval from the Financial Services Authority (FSA) for a change in control of Hichens, Harrison & Co Plc.

It may be noted that Religare Capital Markets Ltd, the wholly owned subsidiary of Religare Enterprises Ltd (REL), the holding Company for financial services businesses of the group had last month announced its decision to make an open offer to Hichens Harrison & Co Plc. The offer was at 285 pence per share cash and valued Hichens Harrison at approximately GBP 55.5 million.

Commenting on the approval, Mr. Sunil Godhwani CEO & MD, Religare Enterprises Ltd said, “We are delighted at this significant milestone in our Journey to seamlessly integrate with Hichens and are looking forward to a smooth completion of the acquisition process at the earliest”.

The Synergies

The acquisition of Hichens will allow RCML to create an international distribution network for Religares domestic institutional business. It will provide Religare the opportunity as an Integrated Indian financial services group, to service the needs of Indian corporate through its large global network and provide small and medium Indian corporate with much needed access to capital.

Religare believes that with continued growth in the Indian economy, it can play a leading role with a large number of investment apparatus to global Institutional investors that will be generated. The acquisition of Hichens will provide Religare with the opportunity of creating a global distribution and execution platform within emerging countries and surely help the Group to emerge as a global player in the financial services market.

The group’s strategy is to develop into a full service merchant bank capable of supporting mid-market companies in their development both locally and internationally. The group intends to capture more capital with an improved array of investment products along with a strong focus on in and broaden its reach Into the mid-market segment in select emerging markets.”