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Infosys to acquire 75 pc stake in ABN AMRO Bank subsi for 127.5 mn euros

twitter-logo PTI        Last Updated: March 28, 2019  | 15:00 IST

New Delhi, Mar 28 (PTI) India's second largest IT services firm Infosys Thursday said it will acquire 75 per cent stake in ABN AMRO Bank's wholly-owned subsidiary, Stater, for 127.5 million euros (about Rs 989 crore). Both the companies have signed an agreement to this effect. Founded in 1997, Stater provides end-to-end mortgage administration services in the Netherlands, Belgium and Germany. As part of the deal, Infosys will acquire 75 per cent of the shareholding in Stater, while ABN AMRO will continue to hold the remaining 25 per cent, Infosys said in a statement. Infosys said the partnership is in alignment with its strategy to strengthen its mortgage servicing capabilities in Continental Europe. The transaction is expected to close during the first quarter of fiscal 2020, subject to customary closing conditions, it added. "This transaction strengthens our approach to offer clients digital platforms and industry focused solutions. It brings together our complementary capabilities to enhance the value we offer to our financial services clients," Infosys President Mohit Joshi said. The current management team of Stater will continue to steer the company, it added. "While mortgages are a key product for ABN AMRO, providing administrative mortgage services is not a core activity. That's why we are very pleased with Infosys as Stater's new majority shareholder. "ABN AMRO will keep a strategic interest of 25 per cent and will continue to be an important client to Stater," Christian Bornfeld, Member of the Executive Board of ABN AMRO, said. Infosys said mortgage services is a focus area for large corporations in the financial sector, given the importance of the asset on a bank's balance sheet. "The specialised knowledge and experience of Stater in the mortgage services market, combined with the global reach, AI, digital transformation and automation capabilities of Infosys, can potentially create differentiated solutions for the market," it added. In a regulatory filing, Infosys said it will have the rights of a majority shareholder as part of the terms of the shareholders' agreement. This includes the right to appoint majority of directors in the supervisory board, right to subscribe to new shares, right of first refusal in the event of transfer of shares, right to restrict amendment of articles, issuance, redemption and repurchase of shares, merger, demerger, bankruptcy or Liquidation among others, it added. PTI SR DRR

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