Bank of India to buy 51pc in Bharti Axa MF
State-run Bank of India (BoI) on Saturday agreed to buy 51 per cent stake in Bharti Axa Mutual Fund for an undisclosed amount.
With the acquisition, Bharti Enterprises, which has about 25 per cent stake in the fund house will exit from the asset management business.
"Bank of India and Axa Investment Managers Asia Holdings (a subsidiary of Axa Investment Managers, part of the Axa Group) have agreed to enter into a joint venture in asset management business carried on by Bharti Axa Investment Managers," a joint statement from the companies said.
Bharti Axa Investment Managers is the asset management arm to Bharti Axa Mutual Fund, which is owned by telecom major Bharti Airtel and French financial services giant Axa Group.
"In the proposed joint venture, BoI will acquire 51 per cent equity and the balance will be with the Axa Group," the statement said.
Post regulatory approval, the bank will acquire 25 per cent stake from Bharti Enterprises and 26 per cent from the Axa Investment Managers Asia Holdings. The fund house, however, did not disclose the transaction size.
Following the stake transfer the name of the fund house will be changed to Bank of India AXA Investment Managers. It is to be noted that the last month, Bharti Enterprises and Reliance Industries talks failed on the stake sale in Bharti AXA insurance companies due to differences over issues related to long term vision and joint governance. With the acquisition of the stake BoI will re-enter mutual fund business.
The bank was in the mutual fund business in 1990. Of the six schemes launched by the fund, four had been redeemed and two schemes transferred to Tauras Mutual Fund after giving exit option to investors in 2004. At present, there are eight MFs either fully or partly owned by banks along with overseas partners.
These include Baroda Pioneer Mutual Fund, Canara Robeco Mutual Fund, ICICI Prudential MF, Principal MF of PNB and SBI Mutual Fund, Axis MF, IDBI Mutual Fund and Union KBC MF of Union Bank. There are 40 mutual fund players in the country with average asset under management of over Rs7 lakh crore.
Post new comment