State-owned Bank of India and AXA Investment Managers Asia Holdings, a subsidiary of AXA Investment Managers (AXA IM) and part of the AXA Group, have entered into a share-purchase agreement for the asset management business run by Bharti AXA Investment Managers (BAIM).
Under the deal, Bank of India will acquire 25 per cent stake from Bharti Enterprises and another 26 per cent from the AXA Investment Managers Asia Holdings. However, the financial details were not disclosed.
Ernst & Young were advisors to the transaction.
Bank of India shares closed at Rs 346.20 per unit on the BSE, up 1.61 per cent from the previous close.
Bharti AXA has been scouting for a suitable suitor to exit its financial services JVs and sell its entire 74 per cent stake in both general and life insurance businesses. In November this year, Bharti Enterprises and Reliance Industries terminated talks for the stake sale in Bharti AXA insurance companies due to differences over issues related to long-term vision and joint governance.
AXA Investment Managers is a multi-expert asset management company within the AXA Group, a global leader in financial protection and wealth management. Headquartered in France, it is one of the largest European-based asset managers with about €514 billion in assets under management as of September 2011. AXA IM employs around 2,400 people and operates out of 23 countries.
Following this deal, Bank of India will re-enter the mutual fund business. The bank was in the mutual fund business in 1990 and of the six schemes launched by the fund, four had been redeemed while two schemes were transferred to Tauras Mutual Fund after giving exit option to investors in 2004.
Incorporated in 1906 and headquartered in Mumbai, Bank of India provides banking and financial services primarily in India and operates as a subsidiary of the Government of India. As of March 30, 2011, the company operated 3,490 branches and 1425 ATMs in India. It also operates 24 branches and five representative offices internationally.
