India's third-largest private lender Axis Bank today said Schroder Singapore Holding will acquire 25% stake in its subsidiary, Axis Asset Management Company.
"...It [Axis Bank] has reached an agreement to sell 25% of its share capital of its wholly owned subsidiary, Axis Asset Management Company to Schroder Singapore Holding Private Ltd," the bank said in a BSE filing.
Financial details were not disclosed.
Schroder Singapore Holding Private Ltd is a wholly-owned subsidiary of Schroders, which is UK's largest asset management company. It has operations in 26 countries.
The transaction is subject to regulatory approval and is expected to be completed during this year, it said.
The deal would provide Axis AMC access to Schroders' global distribution network as well as opportunity to advise overseas funds having investments in Indian securities.
"We look forward to collaborating with Schroders' distinctive product and global franchise in the coming year," Axis Bank MD and CEO Shikha Sharma said.
Schroders CEO Michael Dabson said: "This enables us to participate in the growth opportunity represented by the Indian mutual fund market through strategic relationship with listed private sector bank."