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| UTI Mutual Fund to sell 26% stake by August |
| Press Trust of India / New Delhi May 12, 2009, 16:18 IST |
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The country's oldest fund house, UTI Asset Management Company (AMC), today said it will divest 26 per cent stake to a strategic partner by August this year.
"It (process of stake sale) is on the track. We are awaiting clearnace from the stakeholders," UTI AMC Chairman and Managing Director U K Sinha told PTI.
"Negotiations are on," he said, adding that disinvestment is expected to complete in the next three months.
Sinha, who has been adjudged as the most influential asset manager in Asia by the 'Asian Investor', said that it would be inappropriate to name shortlisted entities but it would be suffice to say there are three shortlisted parties.
UTI Mutual Fund is promoted by four sponsors — State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation — holding 25 per cent each.
The sponsors would divest a portion of their stake that would go to the strategic partner, he said, adding that post divestment, all four investors would dilute stake proportionately to allot 26 per cent to the strategic partner.
He said the strategic partner is expected to add value to the business and strengthen distribution network across the world and help upgrade technology.The decision to divest 26 per cent stake to the strategic partner comes a few months after UTI Asset Management Company deferred its initial public offering owing to uncertain market conditions.
Even the pre-IPO placement that was intended to offload about 11 per cent of the post diluted shares was also been put on hold. About 1.2 crore shares were proposed to be offloaded through pre-IPO placements to strategic partners.
In April, UTI AMC's average asset under management increased by Rs 4,616.77 crore to Rs 54,489.99 crore.
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