Ranbaxy investment arm Religare to acquire majority stake in Lotus India AMC
04 Nov 2008
Religare Enterprises proposes to acquire a majority stake in Lotus India Asset Management Company from its majority shareholders Alexandra Fund Management and Sabre Capital.
''The board of directors of the company at its meeting on 4 November 2008, approved the proposal to discuss, negotiate and finalise the terms for acquiring 100 per cent or majority equity shareholding of 'Lotus India Asset Management Company Pvt Ltd' and delegated authority to sign all necessary documents, MoUs and agreements in this regard,'' Religare Enterprises said in a filing with the Bombay Stock Exchange (BSE).
Lotus India AMC, which had under managements assets in excess of Rs7,937 crore as of end-September, saw its net asset value decline 31 per cent to Rs5,457.7 crore in October.
''Religare will immediately strengthen its position by infusing additional funds into the schemes of Lotus India AMC. Existing investors in Lotus mutual funds will continue to be supported and served in a seamless fashion,'' a release said.
Lotus India AMC is promoted jointly by the fund's chief executive officer Rana Talwar, Sabre Capital Worldwide and the subsidiaries of Singapore government's investment arm Temasek Holdings Pte Ltd and Standard Chartered Bank.
Under normal circumstances, promoters of asset management companies are paid 6% for equity assets under management and 3% for debt assets.