Mumbai: Japan’s Shinsei Bank said on Monday it has reached an agreement to sell its entire stake in its Indian mutual fund unit to Daiwa Securities Group for an undisclosed amount.
“We are re-strategising our corporate strategy to focus largely on Japan, post the global financial turmoil,” Rahul Gupta, senior managing executive officer at Shinsei Bank told Reuters.
He added Shinsei might look again at investment opportunities in India in the medium term.
Other domestic shareholders in the mutual fund unit, investor Rakesh Jhunjhunwala — who holds 15% — and Freedom Financial Services Pvt. Ltd with a 10% stake, will also be selling their entire holdings, the bank said in a statement.
Shinsei Bank holds 75% in Shinsei Asset Management (India) Pvt. Ltd, which managed average assets of Rs4.59 billion ($102 million) as of February-end in India’s Rs7.8 trillion funds industry, according to data from the Association of Mutual Funds of India.
The Daiwa Group, which runs the second largest asset management company in Japan with more than $100 billion of assets, is looking to expand its business in Asia and emerging markets, the statement said.
Earlier this month, the Nikkei business daily reported that Daiwa planned to buy Shinsei’s Indian asset management business for an estimated ¥1 billion ($11.08 million).