Sundaram Finance buys entire BNP stake in two units

Sundaram Finance Ltd (SFL) today said it had bought the entire 49.90 per cent of the equity share capital held by France-based BNP Paribas Asset Management in two of its units, for Rs 141.48 crore.

The company purchased the shares in Sundaram BNP Paribas Asset Management Company and Sundaram BNP Paribas Trustee Company, SFL said in a statement to the Bombay Stock Exchange.

In June this year, the company had decided in principle to acquire the 49.90 per cent stake of BNP Paribas Asset Management (BNP PAM) in Sundaram BNP Paribas Asset Management Company Ltd (Sundaram BNP AMC) and Sundaram BNP Paribas Trustee Company Ltd (Sundaram BNP TC), subject to necessary agreements and regulatory approvals.

Officials at SFL had earlier said the two companies would become 100 per cent subsidiaries of it.

As part of its global acquisition strategy, BNP Paribas SA, the parent company of BNP PAM, had acquired the banking and financial services activities of the Fortis Group, which resulted in 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,” SFL had said earlier.