Mumbai: IDFC Ltd on Sunday said it will acquire the 25% stake currently held by Natixis Global Asset Management in IDFC Asset Management Co. Ltd and IDFC AMC Trustee Co. Ltd for Rs244.24 crore, through IDFC Financial Holding Co. Ltd.
The deal values IDFC Mutual Fund at Rs977 crore.
In March 2008, IDFC had bought Standard Chartered’s asset management business in India for a total consideration of $205 million (around Rs826 crore then) in an all-cash deal.
The purchase had made IDFC Mutual Fund the 14th largest AMC among 32 firms in the country then.
Since then, IDFC Mutual Fund has done better for itself and has raised its rank further in the industry even though the number of firms increased and the competition in the industry intensified.
According to Association of Mutual Funds in India (Amfi), in the December quarter IDFC Mutual Fund was the 10th largest AMC in the 42-firm strong mutual fund industry, managing assets worth Rs17.37 trillion at the end of January.
In the December quarter, IDFC Mutual Fund managed average assets worth Rs57,998 crore. IDFC Financial Holding, a wholly owned unit of IDFC, currently holds about 75% stake of IDFC AMC and IDFC AMC Trustee. The balance 25% is held by Natixis Global Asset Management.
In December 2010, Natixis entered into a share purchase agreement through Natixis Global Asset Management Asia Pte Ltd to take stake in IDFC MF.
As part of the agreement, there was a requirement that both shareholders would review the partnership at the end of five years. Sunday’s announcement is a result of the review clause in the agreement.