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Temasek's Fullerton weighs Indian shadow bank stake sale
[MUMBAI] Fullerton Financial Holdings is considering selling a stake in a shadow bank in India that it fully owns, according to people familiar with the matter.
Fullerton Financial, a subsidiary of Singapore's Temasek Holdings is working with an adviser on the partial divestment of Fullerton India Credit, said the people, who asked not to be identified as the discussions are private. The owner aims to raise about US$350 million from a sale, one of the people said.
There hasn't been a final decision on the size of the deal and Fullerton Financial could still decide against a transaction, the people said. A representative for Fullerton Financial didn't immediately respond to requests for comment.
Fullerton India, started in 2007, provides financing from personal loans to lending backed by property and vehicles, according to its website. The company has nearly 650 branches across India with about 14,000 employees and a net worth of US$612 million, its latest presentation shows. The shadow bank posted a 4.4 billion rupees(S$85.6 million) after-tax profit in the first half of the financial year 2020, a 29 per cent increase from the same period last year.