Competition Commission of India has approved the proposed acquisition of Aavas Financiers Limited by Aquilo House Pte. Ltd.

Aavas Financiers Limited (Acquirer) is a newly incorporated entity, wholly and indirectly held by the Relevant CVC Funds which are certain investment funds or vehicles managed and/or advised by members of the CVC Network. The “CVC Network” or “CVC Group” is a global alternative investment manager focused on private equity, credit, secondaries and infrastructure, consisting of CVC Capital Partners plc. (CVC PLC) and each of its subsidiaries from time to time. CVC PLC is a public limited company whose shares are listed and admitted to trading on the Euronext Amsterdam Stock Exchange.

Aavas Financiers Limited (Target) is registered with the National Housing Bank as a non-deposit taking housing finance company. In India, the Target’s business activities include: (A) provision of (a) Home loans; (b) MSME business loans; (c) Loan against property; and (B) Distribution of life, health, and general insurance products to Target’s customers only.

The proposed transaction relates to acquisition of shares and control by the Acquirer in the Target pursuant to: (i) the share sale agreements executed amongst the Acquirer, the Target and certain existing promoters/promoter group of the Target; and (ii) the mandatory open offer in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Detailed order of the Commission will follow.

Competition approval granted for acquisition of housing finance company, triggering share transfer and mandatory open offer under takeover rules. Competition approval was granted for the proposed acquisition of Aavas Financiers Limited by Aquilo House Pte. Ltd., a newly incorporated acquirer wholly and indirectly held by certain CVC-managed investment funds. The transaction involves share sale agreements with existing promoters and the mandatory open offer obligations under the SEBI Substantial Acquisition of Shares and Takeovers Regulations, 2011. The Target is a National Housing Bank-registered non-deposit taking housing finance company offering home loans, MSME loans, loan-against-property and insurance distribution to its customers.