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DHFL may split its business for takeover by distress funds

FPJ Web Desk

Mumbai: Oaktree Capital, Cerberus Capital, Lone Star Funds (Global distressed funds) and Piramal Group are reportedly in talks to acquire Dewan Housing Finance Corporation.

A source with knowledge said, the company is planning to split the wholesale loan and retail loan businesses. Investors are keen to pick up the retail loan book, while Oaktree Capital is looking at the wholesale loan business.

“DHFL plans to divide the business into two parts – retail and wholesale. Funds like Cerberus, Lone Star and Piramal are looking at the retail assets; while OakTree is in discussion for the remaining wholesale business, which may be about 20 per cent of the total business,” was seen quoting to a financial daily.

DHFL was hit by the liquidity woes that affected non-banking finance companies (NBFCs) in the wake of the crisis by Infrastructure Leasing & Financial Services (IL&FS) group.

“At present, all are still looking at the broad data and how these businesses can be run,” another person aware of the development said.