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Acre ARC set to purchase Indiabulls assets

Los Angeles-based $149 billion Ares Management Corp-backed asset reconstruction company, Assets Care & Reconstruction Enterprise (Acre), has agreed to buyout a majority of the assets owned by Sameer Gehlaut-promoted ARC in a deal likely to be signed as soon as Friday, two people associated with the transaction said.

The deal is yet another attempt by the Sameer Gehlaut-led Indiabulls Group to shed capital-intensive assets as it moves to a new business model based on fees and trailing income.

“The total assets Indiabulls ARC has are about Rs 2,100 crore, out of which about Rs 1,800 crore are being sold to Acre,” said one of the persons cited above. “These are mostly small retail loans like mortgages and loans against property with a small part of corporate and SME loans. The transaction is very close to completion.”

Indiabulls plans to wind down the rest of the book in line with the company’s objective to focus on new businesses like telemedicine, healthcare and

. The ARC business is a 100% subsidiary of the erstwhile Indiabulls Ventures, which has been renamed as Dhani Services. It was started in 2017.

Indiabulls promoter Sameer Gehlaut took over as the CEO of Dhani after he stepped down as chairman of flagship Indiabulls Housing Finance Co in August 2020. He is currently a non executive director of Indiabulls Housing, though he remains promoter of both companies.

“This is the stated objective of the company to move away from the ARC business. The focus of Indiabulls Ventures has also shifted after the launch of this app, which delivers medical and financial services through the use of technology,” said the second person cited above.

Indiabulls and Acre did not respond to separate emails seeking comment.

The deal will help Acre to increase its assets under management to above Rs 10,000 crore and is the second acquisition by the company after completing a Rs 2,800 crore portfolio buyout of real estate NBFC, Altico Capital, in March.

Besides, Ares SSG, which holds 49% stake in Acre, Axis Bank (13.67%) and

(8.31%) are also shareholders in the ARC. Other shareholders include Bank of Baroda and Life Insurance Corp of India.

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