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Sundaram Fin to acquire Newton stakenews
Praveen Chandran
16 February 2002
Mumbai: Following the worldwide acquisition of Newton Investment Management of the UK by Mellon Financial Corporation, Sundram Finance, one of the leading non-banking finance companies, has decided to acquire a 39-per cent stake of Newton Investment in Sundram Newton AMC. Sundram Newton is a 61:39 joint-venture company between Sundarm Finance and Newton Investment.

Sundram Finance vice-chairman Viji Santhanam says following the Mellon takeover of Newton, there has been a shift in the strategic perspective, hence the decision to buy out the Newton stake. "The partnership with Newton has been very rewarding and the disengagement will be very amicable."

In the meantime, Sundram Mutual Fund, with a Rs 800-crore asset-base under management, has, over the last five years, built an effective platform, and is looking to grow significantly in the coming years. And Sundram Bond Saver, its flagship fund was adjudged the winner in the open-ended general debt funds category of the Crisil Best Fund Awards 2001.

The company had entered the mutual fund business in 1996, home finance in 1999 and general insurance in 2001 in partnership with Royal Sun Alliance, UK, as part of its diversification plan.

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Sundaram Fin to acquire Newton stake