MUMBAI: JM Financial on Thursday announced its `in principle' decision to separate from Morgan Stanley in the joint venture in the investment banking and securities broking business.
JM financial group, established in 1973, will acquire the 49 per cent holding of Morgan Stanley in JM Morgan Stanley Private Limited (JMMS), the investment banking company, together with its subsidiaries engaged in fixed income, equity broking, wealth management, advisory and distribution businesses of the joint venture at a book value of $20 million (about Rs. 88.50 crore).
JM Financial will simultaneously sell to Morgan Stanley its 49 per cent holding in JM Morgan Stanley Securities Private Limited (JMSPL), the institutional equity broking company for $445 million (about Rs. 1,970 crore).
The transaction is expected to close by the first quarter of 2007-08. "JM Financial group and Morgan Stanley have agreed that all the existing mandated transactions will be executed by the current joint venture and the partners in the manner currently in practice,'' stated a press release issued here by JM Financial.