Five AMCs in race for Pioneer ITI
By Praveen Chandran | 08 Feb 2002
Mumbai: Five international asset management companies — Zurich India, Prudential ICICI, American Insurance Group, Templeton and Prudential of the US — have been shortlisted as the final bidders for acquiring Pioneer ITI, the joint venture asset management company between the US-based $2.5-billion Pioneer Investment Corporation and Investment Trust of India, a subsidiary of TCK Finance of Kolkota.
Around 16 international AMCs had participated in the pre-qualification bid by submitting their expression of interest for acquiring one of the country's best-managed mutual funds.
In December 2001, in a dramatic turnround in strategy, Pioneer Investment, the US-based mutual fund, and the Sanjay Malloo-controlled TCK Finance had decided to sell their stake in their mutual fund joint venture, Pioneer ITI. While Pioneer holds a 46.54-per cent stake, the remaining equity was held by TCK Finance.
Sources familiar with the development said Pioneer has appointed a leading merchant banker to find a buyer for Pioneer ITI. Zurich India is one of the leading AMCs in India that handles over Rs 2,500 crore through its various investments. AIG has its presence in India through a private equity-fund venture called IL&FC and an insurance venture with the Tata group. Templeton and Prudential ICICI manage full-fledged asset management companies in India.
Pioneer was keen to covert itself into a majority partner with a 51-per cent stake in Pioneer ITI. Sources however said the reasons for the sudden change in the India strategy of Pioneer is unknown. Pioneer ITI is India's oldest and largest private sector mutual fund. The asset management company, in India, manages funds of over Rs 3,000 crore, spread across 7.3 lakh investors.
The Italy-based UniCredito Italiano is the owner of Pioneer Investment Corporation. UniCredito, Italy's second-largest banking group, owns Pioneer Investment Corporation of the US, which has been in the mutual fund industry for over 70 years. The group manages over $20 billion for more than 1 million individuals and institutions.
Around 16 international AMCs had participated in the pre-qualification bid by submitting their expression of interest for acquiring one of the country's best-managed mutual funds. In December 2001, in a dramatic turnround in strategy, Pioneer Investment, the US-based mutual fund, and the Sanjay Malloo-controlled TCK Finance had decided to sell their stake in their mutual fund joint venture, Pioneer ITI. While Pioneer holds a 46.54-per cent stake, the remaining equity was held by TCK Finance. Sources familiar with the development said Pioneer has appointed a leading merchant banker to find a buyer for Pioneer ITI. Zurich India is one of the leading AMCs in India that handles over Rs 2,500 crore through its various investments. AIG has its presence in India through a private equity-fund venture called IL&FC and an insurance venture with the Tata group. Templeton and Prudential ICICI manage full-fledged asset management companies in India.Pioneer was keen to covert itself into a majority partner with a 51-per cent stake in Pioneer ITI. Sources however said the reasons for the sudden change in the India strategy of Pioneer is unknown. Pioneer ITI is India's oldest and largest private sector mutual fund. The asset management company, in India, manages funds of over Rs 3,000 crore, spread across 7.3 lakh investors.
The Italy-based UniCredito Italiano is the owner of Pioneer Investment Corporation. UniCredito, Italy's second-largest banking group, owns Pioneer Investment Corporation of the US, which has been in the mutual fund industry for over 70 years. The group manages over $20 billion for more than 1 million individuals and institutions.