Bank of India to buy 51-% stake Bharti AXA Investment Managers, paves way for Bharti Enterprises' exit

Public sector Bank of India (BoI) has entered into an agreement to acquire a 51-per cent stake in the mutual fund joint venture - Bharti AXA Investment Managers Private Limited (BAIM) - between Bharti Enterprises and France's AXA Group.

This move enables BoI, which had exited the mutual fund industry in 2004, to re-enter the sector. It also paves the way for Bharti Enterprises', the holding company of telecom firm Bharti Airtel, to exit from the joint venture.

''Bank of India and AXA Investment Managers Asia Holdings Pvt Ltd have agreed to enter into a joint venture in asset management business carried on by Bharti AXA Investment Managers,'' said the two companies in a joint statement.

The remaining stake will be held by AXA Group, the statement added.

Ernst and Young was the advisor to the deal, while the companies did not disclose the financials of the deal.

Financial terms of the transaction, which was advised by Ernst & Young, were not disclosed.