Domestic brokerage firm Religare Enterprises has made an offer of about Rs 440 crore (Rs 4.4 billion) to acquire UK-based broking firm Hichens Harrison, a move that aims to broaden the global distribution business of the company.
"We are in talks to acquire the 210 year old broking firm Hichens Harrison and have offered Rs 285 per share. At this price the deal value will be about $110 million or about Rs 440 crore," Group Chief Operating Officer Religare Enterprises Shachidra Nath told PTI.
In a filing to the Bombay Stock Exchange the company said, "It is in discussion with Hichens Harrison in relation to possible offer for Hichens Harrison at a proposed price at or close to the mid market closing price on March 25, 2008."
The deal would broaden the global distribution base of the company. Besides the acquisition would also add up to the bottomline of the firm, Nath added.
Hichens Harrison has over 200 years experience of giving quality service to the discerning investor. It offers clients a wide range of investment solutions including, advisory portfolio management, execution only dealing, derivative sales; institutional sales and research and corporate broking.
The UK-based firm has five regional offices in Johannesburg, Kuala Lumpur, Jakarta, Buenos Aires, Dubai, in addition to the London Head Office.
"It will be possibly the first overseas acquisition by an Indian brokerage firm abroad," Nath said.
Shares of Religare today rose smartly on the Bombay Stock Exchange. The scrip opened firm at Rs 370.30, and then rallied ahead to witness an intra-day high of Rs 390, up 6.78 per cent over its previous close.
At the end of Wednesday's trading session Religare Enterprises was quoted at Rs 380.35, up 4.13 per cent on the BSE. As many as 65,717 shares exchanged hands on the bourse.
Religare is an integrated financial services firm. It has businesses in three key verticals, retail, institutional and the wealth spectrum.
The company is present in more than 1,300 locations across the country.
Religare's recent initiatives include partnership with Aegon, one of the global leaders to launch Life Insurance, Mutual Fund and Pension products in the country and with Macquarie Bank, for a wealth management joint venture.
