Foraying into the mutual fund space, Muthoot Finance Ltd to acquire IDBI Asset Management Ltd (IDBI AMC) and IDBI MF Trustee Company Ltd for Rs 215 crore.
Muthoot Finance said in a statement that the transaction is expected to be completed by the end of February 2020 subject to receipt of necessary regulatory approvals.
After the transactions, both IDBI AMC and IDBI MF Trustee Company will become wholly owned subsidiary companies of Muthoot Finance.
“The transaction will be completed pursuant to the share purchase agreement dated November 22, 2019 entered into by and between Muthoot Finance Limited, sellers and the target companies. Upon completion of the transaction, Muthoot Finance Ltd will purchase 100 per cent equity shares of IDBI Asset Management Ltd and IDBI MF Trustee Company Ltd held by the sellers for a total consideration of Rs 215 crore,” the statement said.
The transaction is subject to receipt of approval from the regulators, including the Securities and Exchange Board of India (Sebi), it added.