JM Financial Limited (JMFL) recently undertook a significant consolidation of its debt and asset restructuring businesses, with legal guidance from Cyril Amarchand Mangaldas (CAM). This strategic move involved JMFL and its subsidiaries, including JM Financial Credit Solutions Limited (JM CSL) and JM Financial Asset Restructure Company (JM ARC), both key players in the debt market.
The transaction was marked by JMFL acquiring a 48.96% stake in JM CSL from INH Mauritius 1, a GIC-backed entity, in multiple tranches. The first tranche saw the acquisition of a 42.99% shareholding in JM CSL for approximately INR 1,282 Crores, with the total deal amounting to INR 1,460 Crores. Concurrently, JMFL sold a 71.79% stake in JM ARC to JM CSL for around INR 856 Crores.
The transaction, initiated on July 6, 2024, involved the execution of share purchase agreements. The completion of this deal hinges on fulfilling customary conditions, including obtaining necessary regulatory approvals.
CAM’s role in this consolidation was pivotal. The firm’s General Corporate team provided extensive legal support, advising the JMFL group on all transaction documents and guiding them through the regulatory landscape to ensure smooth implementation. Strategic advice on Reserve Bank of India (RBI) regulations and competition law aspects were also integral to the successful execution of the transaction.
This consolidation marks a crucial step in JMFL’s strategy to streamline and strengthen its position in the financial services sector, reflecting a well-coordinated effort between legal and corporate teams.
