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UTI-I not to sale stake in UTI Bank
December 23, 2003 22:10 IST
UTI-I will not offload its holding in UTI Bank Ltd and instead be part of the UTI brand to exploit business synergies.
"We have no intention to sell our stake in UTI Bank Ltd where the specified undertaking of Unit Trust of India is promoter," its administrator M Damodaran told reporters on Tuesday when asked if the undertaking would participate in the proposed open offer by Honkong and Shanghai Banking Corporation.
The UTI Bank was a good asset and investment, he added.
"We are planning to develop the UTI brand whose ambit is not confined to the UTI Asset Management Company," Damodaran said adding the UTI Bank would also be part of the brand building strategy.
On December 2, HSBC signed a pact with CDC to pick up its 14.71 per cent stake in UTI Bank from CDC Financial Services (Mauritius) Ltd and South Asia Regional Fund for Rs 306 crore ($66.42 million).
In addition, HSBC would have the option to acquire an additional 5.37 per cent stake from CDC for Rs 112 crore ($24.26 million).
HSBC would also be making an open offer to buy at least additional 20 per cent stake in the private sector bank at Rs 90 per share in accordance with Sebi's takeover regulations.