Religare to buy out Macquarie in joint venture

Religare Enterprises Ltd (REL) on Monday announced its decision to end its six-year old wealth management alliance by acquiring the stake of Australia-based Macquarie Group in the equal joint venture - Religare Macquarie Wealth Management Ltd (RMWML).

Religare did not disclose the value of the transaction.

REL said the entity will be rechristened Religare Wealth Management Limited (RWML) once the transaction and necessary formalities are completed.

There will, however, be no change in the management team, which will report to Basab Mitra, Religare group CEO for capital markets and wealth management.

Commenting on the development, Shachindra Nath, group CEO, REL, said, ''The partnership with Macquarie has been fruitful. Macquarie has decided to exit the wealth management business from Asia, including India and this has created for us the opportunity to further consolidate our financial services platform in India.''

The joint venture, formed in 2007, was intended to tap the  fast-growing Indian high net worth individual (HNI) client base by leveraging Religare's local knowledge and Macquarie's global expertise.

REL is a financial services company having interest in a host of businesses, including asset management, life and health insurance, lending, broking, investment banking and wealth management.

REL is also among the 26 firms that have applied for banking licence under the RBI's proposals to award fresh bank licences.

As of end March, the joint venture had assets under management of Rs2,800 crore servicing over 4,800 clients.

REL announced the decision to acquire Macquarie's stake in its wealth management after market hours. Religare Enterprises' scrip closed at Rs338.3, up 5.13 per cent on the BSE on Monday.