| Rel Cap to sell 5% AMC stake for Rs 501cr |
| BS Reporter / Mumbai December 12, 2007 |
| Eton Park, the US-based global multi-strategy investment organisation, has bought 5% stake in Reliance Capital Asset Management (RCAM), the wholly-owned mutual fund arm of Reliance Capital, for Rs 501 crore. The deal values the Anil Ambani-controlled asset management company (AMC) at over Rs 10,000 crore. The proposed investment values RCAM at approximately 13% of its assets under management (AUM). Reliance Capital AMC manages Rs 77,764 crore (as on November 30), and is the top fund house in terms of AUM. According to a statement issued by Reliance Capital,"the RCAM valuation translates into a price of Rs 400 per share of Reliance Capital." The proceeds of the transaction will be utilised by RCAM for its domestic and international expansion. The transaction is subject to completion of definitive documentation and necessary approvals, if any, and is expected to close in January 2008. Vikrant Gugnani, president and CEO, Reliance Capital Asset Management, said: "We welcome Eton Park as a respected long-term institutional investor, and value this association given Eton Park's significant global presence in the financial markets." Eton Park currently manages over US$ 10 billion through its offices in New York, London and Hong Kong. The investment by Eton Park comes at a time when a host of global asset management companies announce entry into the Indian mutual fund space. UTI Mutual Fund, the country |
