Axis Bank has received the required approval from the Reserve Bank of India (RBI) to complete the acquisition of mobile wallet company Freecharge for ₹373.27 crore on a cash-free, debt-free basis.
The bank is now cleared to complete the acquisition of Accelyst Solutions Private Limited — the payments processing business, and Freecharge Payment Technologies Pvt Ltd — the semi-closed prepaid wallets business.
It has also announced the appointment of Sangram Singh as the new CEO of Freecharge. Prior to this appointment, Singh was serving as the EVP and head of cards and payments business at Axis Bank.He had joined Axis Bank back in April 2014 as the head of the cards (credit, debit and prepaid cards) and merchant acquiring.
Singh joined Axis Bank back in April 2014 as the head of the cards (credit, debit and prepaid cards) and merchant acquiring business. Before that, he was with Citibank for about 9 years.
Earlier, in July, Axis Bank entered into a share purchase agreement with Jaspers Infotech Private Limited, which runs Snapdeal, to buy 100 percent stake in its payments subsidiary Freecharge in an all-cash deal worth ₹385 crore.
On October 6th, Axis announced in a regulatory filing that the bank had completed the acquisition of Freecharge for a cash consideration of ₹373.27 crore. Commenting on the difference of about ₹12 crore, Axis Bank said, “the difference in announced value and executed value is due to business-related adjustments, as is standard practice for such transactions.”
The cash coming from the Freecharge deal will provide Snapdeal with the much-needed breather. The e-commerce company has decided to run its business independently after declining to be acquired by rival Flipkart a couple of months ago.