The Hindu : Business : T Rowe to buy stake in UTI AMC

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Tuesday, Nov 10, 2009
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T Rowe to buy stake in UTI AMC

MUMBAI: The four sponsors of UTI Asset Management Company have divested 6.5 per cent stake each to U.S. institutional investor T Rowe Price for a consideration of Rs. 650 crore.

Three shareholders of UTI Asset Management Company and UTI Trustee Company — State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BOB) — on Monday informed the stock exchanges of their dilution of stake.

Each of the three institutions at present holds 25 per cent equity in UTI Asset Management Company as well as UTI Trustee Company and pursuant to the said transaction, their shareholdings would drop to 18.50 per cent. The said transaction is subject to requisite statutory and regulatory approvals.

T Rowe would acquire PNB’s 6.5 per cent stake in UTI AMC and UTI Trustee for Rs. 162.50 crore and Rs. 77,500 respectively.

“PNB has executed the documents today for sale of 81.25 lakh shares of UTI AMC at a price of Rs. 200 each aggregating to Rs. 162.50 crore, and 6,500 shares of UTI Trustee at Rs. 11.92 per share amounting to Rs. 77,500,” the lender said in a filing to the stock exchanges.

The financial details of Bank of Baroda, State Bank of India and Life Insurance Corporation of India were not disclosed.

State-owned lender Bank of Baroda, said it was diluting its 6.5 per cent stake in UTI AMC and UTI Trustee Company and that the valuation was attractive.

“We are disinvesting 6.5 per cent in UTI AMC out of the 25 per cent we are holding. The valuation is quite attractive at this point of time,” BoB’s Chairman and Managing Director, M D Mallya, told reporters here. The value of the 6.5 per cent stake sold by the bank is around Rs 163-crore, he said. — PTI

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