Press Trust of India / Mumbai Nov 09, 2009, 12:04 IST
Foreign institutional investor T Rowe Price is set to acquire as much as 19.5 per cent stake in UTI Asset Management Company as well as UTI Trustee.
Three shareholders of UTI Asset Management Company and UTI Trustee Company--State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BOB)--today informed the stock exchanges that each of them would divest 6.5 per cent in both the entities to T Rowe Price.
Each of the three institutions at present holds 25 per cent equity in UTI Asset Management Company as well as UTI Trustee Company and pursuant to the said transaction, their shareholding would drop to 18.50 per cent.
The said transaction is subject to requisite statutory and regulatory approvals.
T Rowe would acquire PNB's 6.5 per cent stake in UTI AMC and UTI Trustee for Rs 162.50 crore and Rs 77,500 respectively.
"PNB has executed the documents today for sale of 81.25 lakh shares of UTI AMC at a price of Rs 200 each aggregating to Rs 162.50 crore, and 6,500 shares of UTI Trustee at Rs 11.92 per share amounting to Rs 77,500," the lender said in a filing to the stock Exchanges.
The financial details of the BOB as well as the SBI transactions were not disclosed.
Reportedly, the US investment firm, will have 26 per cent equity in the Indian company that manages assets worth over Rs 67,000 crore.
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