By IANS,
Chennai : City-based non-banking finance company Sundaram Finance has decided to buy out BNP Paribas Asset Management’s entire holding in Sundaram BNP Paribas Asset Management Company and Sundaram BNP Paribas Trustee Company.
Post acquisition of BNP Paribas’ 49.9 percent stakes, the two companies will become wholly owned subsidiaries of Sundaram Finance.
In a statement issued here Wednesday, Sundaram Finance said the deal is subject to the necessary regulatory approvals.
The buy out was necessitated as BNP Paribas SA acquired the banking and financial services activities of the Fortis Group outside Netherlands, which resulted in its indirectly acquiring interests in Fortis Investment Management (India) Private Limited and Fortis Trustee (India) Private Limited, the asset management and trustee company respectively of Fortis Mutual Fund in India.
As per Indian regulations, no one can have two mutual fund companies and as such BNP Paribas has to decide between Fortis Mutual Fund and Sundaram BNP Paribas Asset Management Company.
According to Sundaram Finance, there will be no impact on the remaining three joint ventures with BNP Paribas – Sundaram BNP Paribas Home Finance, Sundaram BNP Paribas Fund Services and BNP Paribas Sundaram Global Securities Operations Private Ltd.
No financial details – the buy out price, mode of valuation, agency valuing the stakes- were shared by Sundaram Finance.