SSG Capital to retain Altico staff post deal

MUMBAI:Hong Kong-based special situations fund SSG Capital has assured Altico Capital that it will retain all jobs after the buyout and does not see the ongoing the China-India tussle thwarting the deal, said three people aware of the development.

Employees have written to the Reserve Bank of India (RBI) after SSG Capital said it will retain jobs, saying that they have no problem with the deal, contrary to their earlier letter in April, said these people, on condition of anonymity.

“In the new letter, employees have said that they are in favour of the deal,” said one of the persons mentioned above.

Altico Capital voted in favour of the resolution plan proposed by SSG Capital, Mint reported on March 12.

SSG Capital had offered ₹2,750 crore upfront for the non-banking financial company (NBFC), but planned to sell its loans and close it down later. The other contender, private equity firm Cerberus Capital, had offered ₹2,500 crore upfront, security receipts (SRs) of ₹400 crore redeemable in three years and ₹1,000 crore as equity infusion.

SSG Capital held a call with the Altico Capital management team earlier this week, according to the other person cited above. From the discussions on the call, it has emerged that the deal is on track and lawyers will soon prepare the document for a change of control at the NBFC, the second person said.

“The company will send the document to RBI by next week for its approval. There was a concern among employees that the deal could either be delayed or face other hurdles because of the India-China conflict and the issue of FDI from neighbouring countries,” he said.

The government on April 22 issued a notification under the Foreign Exchange Management Act, which required investments originating from seven neighbouring countries including China, to seek prior approval of the government.

IN THE NEW LETTER TO THE RBI, EMPLOYEES OF ALTICO HAVE SAID THAT THEY ARE IN FAVOUR OF THE DEAL