Sundaram Finance Limited (SFL) has decided to buy out BNP Paribas Asset Management (“BNP PAM”) in its two joint ventures with the latter for an undisclosed sum. SFL has 49.90 per cent shareholding in both Sundaram BNP Paribas Asset Management Company Limited (“Sundaram BNP AMC”) and Sundaram BNP Paribas Trustee Company Limited (“Sundaram BNP TC”).A decision on the buy-out was taken at board meeting of SFL here on Wednesday. The buy-out, of course, is subject to necessary agreements and regulatory approvals. Pursuant to the acquisition, these two companies will become 100 per cent subsidiaries of SFL.
As a part of a global acquisition, BNP Paribas SA (parent of BNP PAM) acquired the banking and financial services activities of the Fortis Group, which resulted in its indirectly acquiring interests in Fortis Investment Management (India) Private Limited and Fortis Trustee (India) Private Limited, the asset management and trustee company, respectively, of Fortis Mutual Fund in India.
Consequently, SFL and BNP PAM have, after careful consideration of the available options, amicably decided, in-principle and subject to execution of necessary agreements and receipt of regulatory approvals, to proceed with the disengagement from their joint ventures in Sundaram BNP AMC and Sundaram BNP TC, and for SFL to acquire the interests of BNP PAM therein.
However, the parting of ways in the two joint ventures will have no impact on the other three joint ventures namely, Sundaram BNP Paribas Home Finance Ltd. (SFL Group holding 51 per cent), Sundaram BNP Paribas Fund Services Ltd. (SFL Group holding 51 per cent) and BNP Paribas Sundaram Global Securities Operations Private Limited (SFL Group holding 49 per cent). The partners with their active and continued participation look forward to further strengthening their relationship and ensure sustained growth of these joint ventures, says a release.