Sundaram Finance today said that it will acquire 49.90 per cent stake from BNP Paribas Asset Management in two of their joint ventures for an undisclosed amount.
The South India-based financial services firm would acquire stakes in two joint ventures -- Sundaram BNP Asset Management Company and Sundaram BNP Paribas Trustee.
In a statement, Sundaram Finance said that following the acquisition of 49.90 per cent stake, the two companies would become 100 per cent subsidiaries.
However, the financial details of the deal were not disclosed.
French major BNP Paribas SA had bought the banking and financial services activities of Fortis Group. Consequently, the entity had indirectly acquired the asset management and trustee companies of Fortis Mutual Fund in India.
In view of the above, Sundaram and BNP have decided in principle to proceed with disengagement from the two joint ventures, the statement said.
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However, sources said there would be no impact on the other three joint ventures between Sundaram and BNP -- Sundaram BNP Paribas Home Finance, Sundaram BNP Paribas Fund Services and BNP Paribas Sundaram Global Securities Operations.
Shares of Sundaram Finance closed at Rs 453.50, down 0.80 per cent on the Bombay Stock Exchange.
Sundaram BNP Paribas Asset Management Company (AMC) currently manages average assets worth nearly Rs 14,000 crore.
The cumulative assets managed by the 37 fund houses in the country stood at Rs 8.03 lakh crore at the end of May.
At present, seven of the top 10 fund managers are joint ventures with local partners holding a controlling stake. Franklin Templeton Asset Management India is the only 100 per cent foreign-owned asset manager among the top 10, while Kotak Mahindra AMC is the only one among the larger asset managers without a foreign partner.