The Competition Commission of India (CCI) has approved the stake buy in Hero FinCorp Limited (HFL) by a Singapore-based affiliate of Apollo Global Management.

Under the proposed transaction, which has received a CCI nod, AHVF II Holdings Singapore II Pte. Ltd. (Acquirer) will acquire certain compulsorily convertible preference shares of HFL (target), which is the lending arm of Hero Group. The specific deal terms were, however, not disclosed.

“The Proposed Combination relates to the subscription of certain compulsorily convertible preference shares by Acquirer of Target, which upon conversion will represent a certain shareholding in HFL”, an official release said. 

The acquirer is a private limited company incorporated in Singapore. It is owned by investment funds managed by affiliates of Apollo Management L.P.

Apollo Management L.P, its affiliates, and investment funds managed by its affiliates are referred to as Apollo.  

Apollo Management L.P. is a limited partnership formed under the laws of the State of Delaware, U.S.A. Investment funds managed by affiliates of Apollo invest in companies and debt issued by companies involved in various businesses throughout the world.

Target is an entity incorporated in India and is primarily engaged in the business of financing and related financial services. 

HFL is registered as a systemically important non-deposit taking non-banking finance company with the Reserve Bank of India. HFL’s wholly-owned subsidiary, Hero Housing Finance Limited, offers a range of housing loans and loans against property to various segments of society.

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