StandChart to sell MF business to IDFC

07 March 2008

UK-based Standard Chartered PLC is divesting its mutual fund assets in India to Infrastructure Development Finance Company for $205 million, subject to the usual approvals and closing conditions and is expected to be completed in the second quarter of 2008.

The transaction does not include Standard Chartered's mutual fund distribution business, which the British bank will continue to operate.

The two financial groups today signed an agreement for the Indian company to acquire 100-per cent stake in two standard Chartered subsidiaries - Standard Chartered Asset Management Company Pvt Ltd and Standard Chartered Trustee Company Pvt Ltd that represent the UK bank's mutual fund business in India.

The asset management company had had assets of about Rs14,625 crore at the end of January 2008.

Early last month Reserve Bank of India had disallowed the Swiss bank group UBS, hit by exposures in the US sub prime mortgage market, from acquiring Standard Chartered Asset Management Company.

The UK-based bank, which has been keen to divest the mutual fund business, had received expressions of interest from about 40 financial services groups including Japan's Shinsei Bank, Credit Agricole, Mirae Asset Group and Goldman Sachs.