New Delhi: Infrastructure Development Finance Company Limited (IDFC) has bought the asset management business of Standard Chartered in India for $205 million.
The transaction is subject to certain regulatory approvals and other closing conditions, and is expected to complete in the second quarter of 2008.
The consideration is before deductions for local taxes and deal expenses and the companies purchased under the deal include Standard Chartered Trustee Company Private Limited and Standard Chartered Asset Management Company Private Limited, besides some minorities.
The transaction does not include Standard Chartered's mutual fund distribution business, which Standard Chartered will continue to pursue.
Earlier CNBC-TV18 had reported quoting sources that the deal is at 70 per cent higher valuation to what UBS was to pay StanChart. UBS was to buy StanChart MF for $120 million. The other bidders for StanChart MF were Indiabulls and Shinsei Bank.
CNBC-TV18 Analyst Payal Bhattar said that two months after StanChart walked out of its deal with UBS, it’s finally zeroed down on a new suitor for its Indian mutual fund. CNBC-TV18 first reported this deal and now its official. IDFC is buying StanChart Mutual Fund.
Standard Chartered PLC, listed on both the London Stock Exchange and the Hong Kong Stock Exchange, ranks among the top 25 companies in the FTSE-100 by market capitalisation while IDFC was incorporated in 1997 as a public limited company under the Companies Act, 1956.
(With inputs from moneycontrol.com)
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