Principal MF to buy Sun F&C

Principal, which current
02 July 2003

Mumbai: Principal Mutual Fund, which recently acquired full control of its asset management company by buying out its joint venture partner IDBI for about Rs 90 crore, has said it had reached an agreement with Sun F&C mutual Fund to take over and manage its schemes in India.

Principal, which currently has assets worth about Rs 2,300 crore under management, will take over about Rs 500 crore in assets managed by Sun F&C and a retail client base of over 70,000 investors. The valuation of Sun F&C was, however, not available.

Enam Financial Consultants Pvt Ltd advised the Sun group in structuring the deal. Says Principal Financial group country manager Sanjay Sachdev: "For Principal, this is a good move, creating tremendous value." He, however, declines to say how much the group will pay Sun F&C.

Asked if there will be any rationalisation of manpower in Sun F&C, he says he is "not in a position to comment."