T Rowe acquires 26% in UTI AMC, UTI Trustee

Foreign institutional investor T Rowe Price today said it has completed the acquisition of 26 per cent stake in UTI Asset Management Company and UTI Trustee company for Rs 650 crore.

"T Rowe Price Group closed today on its previously announced transaction to acquire a 26 per cent stake in UTI Asset Management Company and UTI Trustee Company for Rs 6.5 billion ($142.4 million)," the company said in a statement.

Earlier on November 2009, the foreign fund had announced its plans to acquire 6.5 per cent stake from each of the original four stockholders -- State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India -- amounting to 26 per cent in UTI Asset Management Company and UTI Trustee company.

Pursuant to the said transaction, State Bank of India, Punjab National Bank, Bank of Baroda, and Life Insurance Corporation of India will retain an 18.5 per cent stake in UTI Asset Management Company.

ICICI Securities was the sole adviser to T Rowe Price's strategic acquisition of UTI Asset Management Company.