Fullerton Financial Holdings (FFH) has reached an agreement to sell its 74.9 per cent stake in its non-banking finance company to Japan’s Sumitomo Mitsui Financial Group (SMFG).   

The development marks a step towards fully divesting Fullerton India Credit Company (FICC). “SMFG will eventually acquire 100 per cent of FICC,” a media release from Fullerton India Housing Finance Company has said.   

“We intend to leverage our expertise in the Japan market as well as capabilities of our franchises across key emerging Asian markets. We are pleased to partner with FFH and jointly accelerate FICC’s growth strategy,” Jun Ohta, the president and group CEO of SMFG, has said.   

Fullerton India said that its housing finance company would continue to be its wholly-owned subsidiary. In 2016, Fullerton India had launched Fullerton India Home Finance Company, which operates under the Grihashakti brand.   

Fullerton India began operations in 2007. The company is a wholly-owned subsidiary of FFH, which itself is fully owned by Singapore State investment firm Temasek. It operates in verticals including personal and business loans, SME loans and housing finance. It has more than 14,000 employees who serve over 3.6 million customers across the country.

SMFG offers a diverse range of financial services, including commercial banking, leasing, securities and consumer finance, in Japan. It is listed on the Tokyo and New York stock exchanges and had a market capitalisation of about $47.4 billion as of June 30.