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Religare board nods plan to buy Lotus AMC
November 04, 2008 15:58 IST
Integrated financial services [Get Quote] group Religare Enterprises said on Tuesday it will acquire Lotus India Asset Management Company for an undisclosed amount.
The board of director at their meeting held on Tuesday approved the proposal to discuss, negotiate and finalise the terms of acquiring 100 per cent or majority equity shareholding of Lotus India AMC, Religare said in a statement.
"We are delighted to take on a business that has been backed and promoted by institutions of such stature and pedigree and looking forward to taking it to the next level of growth.
"Like all other businesses that Religare operates globally we are committed to building it further as a business of excellence with a leadership position," Religare Enterprises CEO and managing director Sunil Godhwani said.
The company has agreed to acquire Lotus India AMC from its majority shareholders, Alexandra Fund Management (an affiliate of Fullerton Fund Management Company Ltd) and Sabre Capital.
However, the company has not given any financial details about the acquisition, which is subject to regulatory approvals.
Existing investors in Lotus mutual funds would continue to be supported and served in a seamless fashion, the statement added.
Religare plans to immediately strengthen the position of Lotus India by infusion of further funds into its schemes.
Lotus India AMC is a joint venture between Fullerton Fund Management Group and Sabre Capital Worldwide, while Alexandra Fund Management is the sponsor.
Both Fullerton and AFM are wholly-owned by Singapore-based Temasek Holdings.
Besides, Religare has an existing presence in the asset management space through a JV with Aegon. Post approvals of the acquisition of Lotus India it intends to further strengthen its position in this category.
Lotus India AMC's asset under management has fallen to Rs 5,457.70 crore (Rs 54.57 billion) at the end of October from Rs 7,937.07 crore (Rs 79.37 billion) in the previous month, according to the latest data from Association of Mutual Funds in India website.
The meltdown in the equity markets has caused the mutual funds industry to see a 18 per cent drop in the combined assets under management to Rs 4,31,901.42 crore (Rs 4,319.01 billion) in October.
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