IDFC buys Natixis’ stake in mutual fund unit for Rs244 crore
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New Delhi: IDFC Ltd has agreed to acquire a 25% stake held by Natixis Global Asset Management in IDFC Mutual Fund for Rs244.24 crore. The transaction is expected to conclude by the end of this month, according to a regulatory filing.
IDFC Financial Holding Co. Ltd, a wholly-owned subsidiary of IDFC, currently holds 75% stake of IDFC Asset Management Co. (AMC) and IDFC AMC Trustee Co. The remaining 25% is held by Natixis Global Asset Management.
With an asset base of Rs57,998 crore at the end of the December quarter, IDFC Mutual Fund manages a range of funds across debt and equity classes. In December 2010, Natixis Global Asset Management struck a share purchase agreement to take stake in IDFC AMC and IDFC AMC Trustee.
As part of the agreement, there was a requirement that both shareholders will review the partnership at the end of five years. Following a review clause in the agreement, IDFC, in a filing to stock exchanges, said it has “agreed to acquire through IDFC Financial Holding Company the balance stake (about 25%) in IDFC AMC and IDFC AMC Trustee from Natixis Global Asset Management”.