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| Sundaram Fin to buy out BNP from AMC |
| BS Reporter / Chennai Jul 01, 2010, 03:57 IST |
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The Sundaram Finance (SFL) board has decided in principle to acquire 49.4 per cent stake from BNP Paribas Asset Management in both Sundaram BNP Paribas Asset Management Company and Sundaram BNP Paribas Trustee Company, subject to necessary agreements and regulatory approvals.
Company officials declined to comment on the acquisition cost stating that it is confidential. They added pursuant to the acquisition, these two companies will become 100 per cent subsidiaries of SFL.
As part of a global acquisition, BNP Paribas SA (parent of BNP PAM) acquired the banking and financial services activities of the Fortis Group, which resulted in its indirectly acquiring interests in Fortis Investment Management (India) Private Ltd and Fortis Trustee (India) Private Ltd, the asset management and trustee company respectively of Fortis Mutual Fund in India.
“In view of the above, SFL and BNP PAM have, after careful consideration of the available options, amicably decided, in-principle and subject to execution of necessary agreements and receipt of regulatory approvals, to proceed with the disengagement from their joint ventures in Sundaram BNP AMC and Sundaram BNP TC, and for SFL to acquire the interests of BNP PAM therein”.
Sundaram BNP Paribas AMC assets under management are around Rs 12,800 crore.
“There will be no impact on the other three joint ventures including Sundaram BNP Paribas Home Finance ( SFL group holding 51%), Sundaram BNP Paribas Fund Services, (SFL group holding 51%) and BNP Paribas Sundaram Global Securities Operations Private (SFL group holding 49%).
The partners with their active and continued participation look forward to further strengthening their relationship and ensure sustained growth of these joint ventures, according to company’s statement.
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