M&A

M&A

Federal Bank to acquire select retail credit card portfolio from Stanchart

Press Release   Mint  

Ernakulam, Kerala-based Federal Bank is to acquire a select retail credit card portfolio from Standard Chartered. The portfolio is valued at 1.5-1.6 times implied equity, with the final consideration linked to actual balances at the time of transfer. Arpwood Capital served as the financial advisor to Federal Bank, with Khaitan & Co as legal counsel and KPMG as the due diligence advisor. Trilegal acted as legal counsel for Standard Chartered.Federal Bank will acquire approximately 450,000 credit cards, with around 75% of this card base concentrated in eight cities. This acquisition will add to Federal Bank's existing base of 800,000 non-co-branded cards and 1.3 million co-branded cards.