Bharti to sell stake in Bharti-ASA; exit MF business
24 Dec 2010
Bharati Enterprises, which has a 25-per cent stake in Bharti-AXA Mutual Fund, a unit of Axa SA, is likely to sell its stake in the mutual fund firm to Bank of India.
The deal could be finalised within a month, the report said. Earlier, public sector banks like Central Bank and Indian Overseas Bank were reported in the race to buy the stake in the mutual fund house.
Bharti Enterprises is part of the the Bharti Group that runs Bharti Airtel. According to the market participants, Bharti Enterprises is likely to exit from the mutual fund business.
"We are looking for a banking partner, but I cannot comment whether it will be completed within the next month as there are several processes to go through," Sandeep Dasgupta, chief executive, Bharti AXA Investment Manager, told Financial Express.
Dasgupta didn't comment on the share price at which Bharti will exit the business. ''You will know it once the deal is done,'' he said.
For the last two years, Bharti-AXA MF was looking for a partner to expand its asset management business, but talks were put on hold following financial meltdown of 2009. A senior official close to the development said, ''Valuations are still being worked out as Bank of India is planning to buy more than 25 per cent stake in the fund house.''
