Reliance ADAG is acquiring 51% stake in UK-based currency exchange and money transfer firm No 1 Currency to foray into the international forex business and to tap onto the 1.6 million NRI population in the country for money remittance business, a top company executive said. Although the deal value stands undisclosed, a person with direct knowledge of the transaction said the Indian business group will shell out Rs 100 crore to pick majority stake in the UK company.
The deal, first reported by ET in its edition dated December 16, 2008, will mark the first overseas acquisition of a foreign exchange company by an Indian firm.
Edinburgh-based No 1 Currency operates close to 300 currency exchange outlets in the UK and is one of the fastest growing independent foreign currency specialists in the country. Formed in 1996, the privately-held firm is owned by its two founding partners David Hale and Mark McElney.
As per the transaction, Reliance Money Express, a subsidiary of Reliance Capital will acquire shares from both the current owners who will continue to be minority shareholders.
Reliance Money CEO Sudip Bandyopadhyay, who is part of the team overseeing the money transfer business of the R-ADA group, confirmed the deal, “The existing management of No 1 Currency would continue to lead the firm. Reliance ADAG will get 2-3 board seats once we complete the transaction.” He declined to comment on the deal value.
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