State-run Bank of India (BoI) today said it has acquired 51% stake in Bharti Axa Mutual Fund for an undisclosed amount.
Bank of India and AXA Investment Managers Asia Holding have now upon receipt of all regulatory approvals, completed the formalities for acquisition of 51% of the equity stake of Bharti AXA investment Managers and Bharti AXA Trusteeship Services, the bank said in a filing to the BSE.
Remaining 49% stake will be with the Axa Group.
However, the bank did not disclose the transaction size.
With the acquisition, Bharti Enterprises, which had about 25% stake in the fund house, has made an exit from the asset management business.
The bank has acquired 25% stake from Bharti Enterprises, while 26% from the Axa Investment Managers Asia Holdings.
In December, 2011 BoI had said the name of the fund house will be changed to Bank of India AXA Investment Managers after the acqisition is complete.
With the stake transfer, BoI is re-entering mutual fund business. The bank was in the mutual fund business in 1990.
Of the six schemes launched by the fund, four had been redeemed and two schemes transferred to Tauras Mutual Fund after giving exit option to investors in 2004.
At present, there are eight MFs either fully or partly owned by banks along with overseas partners.
These include Baroda Pioneer Mutual Fund, Canara Robeco Mutual Fund, ICICI Prudential MF, Principal MF of PNB and SBI Mutual Fund, Axis MF, IDBI Mutual Fund and Union KBC MF of Union Bank.