Bank of India (BOI) has agreed to purchase the shares held by AXA Investment Managers in BOI AXA Investment Managers Pvt Ltd (BAIM) and BOI AXA Trustee Services Pvt Ltd (BATS) as the bank believes in the long term potential of the asset management business and also in the interest of unit holders who had reposed faith in BOI AXA Mutual Fund.
Strategic acquisition of 49 per cent stake of AXA Investment Managers in BAIM and BATS "shall enable Bank of India to have complete control on the AUM of Rs. 2,426 crore and grow the Asset Management business by leveraging on the Bank of India's brand and distribution strength," it said.
"Bank of India would be able to give boost to BOI AXA Mutual Fund business using its wide network of Branches, make it much more profitable and create a better monetizable value of the franchisee," it added.
In a tweet on Wednesday, the Competition Commission of India (CCI) said the "Commission approves acquisition of 49% stake each in BOI AXA Investment Managers & BOI AXA Trustee Services by Bank of India."
The state-owned lender had in December 2020 said it will acquire 49 per cent stake each in BOI AXA Investment Managers Pvt Ltd and BOI AXA Trustee Services Pvt Ltd.
Following the transaction, both the entities — BAIM and BATS — will become Bank of India's fully-owned subsidiaries.
"Bank of India has amongst other parties entered into a share purchase agreement (SPA) with AXA Investment Managers Asia Holdings Pvt Ltd (AXA IM) on December 2, 2020 whereby the bank has agreed to purchase AXA IM''s entire 49 per cent in BAIM," the bank had said in a regulatory filing.
Besides, it has also entered into an SPA to purchase the entire 49 per cent equity shares in BATS, it had added.
Bank of India holds 51 per cent equity shares each in BAIM and BATS.
"Pursuant to this transaction, Bank of India shall hold 100 per cent equity shares in BAIM and BATS. The transaction is done at arms-length basis," Bank of India said.
AXA IM is an investment arm of AXA Investment Managers — one of the world's leading asset managers, backed by the AXA Group.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.