JM Financial, Morgan Stanley to split
Our Corporate Bureau
22 February 2007
JM Financial and Morgan Stanley will be parting ways. CNBC-TV18 had reported on the split a few months back in August 2006.
JM Financial will buy 49-per cent of Morgan Stanley in JMMS. JM Financial has asked for in-principle nod to separate from Morgan Stanley. The transaction between JM Financial and Morgan Stanley will be completed by Q1FY08.
JM Financial will buy the investment banking business from Morgan Stanley at BV of $20 million. Also, JM will sell institutional securities for $445 million. JM Financial will separate investment banking and its securities brokerage business.
Nimesh Kampani, chairman, JM Morgan Stanley, says that JM Financial Group will build its own institutional equity broking and research business. Moreover, Morgan Stanley believes that it is the right time for them to develop a fully owned India platform.
Morgan Stanley India will combine the firm''s existing wholly-owned businesses, including Morgan Stanley Investment Management and Morgan Stanley Real Estate, alongside the institutional equities business. It will build out its investment banking, capital markets, fixed income and private wealth management platforms.
JM Financial is mulling at capitalising NBFC by $50 million and will look at banking option