Nikko reworks stake in Ambit Group JV to 51%
Japanese asset management firm Nikko and Ashok Wadhwa-promoted Ambit Group have reworked their partnership for the domestic mutual fund business.
By ET Bureau | Updated:
MUMBAI: After nearly five years, Japanese asset management firm Nikko and Ashok Wadhwa-promoted Ambit Group have reworked their partnership for the domestic mutual fund business.
The new joint venture will be 51:49, scrapping the earlier shareholding structure of 74:26. Nikko and Ambit’s mutual fund business has been delayed since they jointly announced in December 2006.The reason for the venture not taking off was due to market conditions, Ashok Wadhwa said on Monday.
“Nikko will now hold 51% in the joint venture while Ambit will hold the remaining stake in the domestic mutual fund business,” said Ashok Wadhwa, Group CEO of Ambit on the sidelines of the conference, on the launch of its investment advisory business with Nikko.
“In this competitive landscape to scale up is a challenge,” Wadhwa said. “Last month Nikko Asset Management India under the new shareholding pattern re-filed their application with market regulator Sebi,” he said.
Besides, the mutual fund business Ambit has also entered into a joint venture with Nikko to expand their off-shore capabilities. On Monday, Ambit Holdings and Nikko Asset Management announced their new joint ventures in India and Mauritius.
Under the new arrangement, Nikko Asset Management has picked up a 50.1% equity stake in Ambit Mauritius Investment Managers and a 49% stake in Ambit Investment Advisors for an undisclosed amount. Both the parties will manage and advise dedicated India funds with an initial corpus of $150 million.
Andrew Holland who will be spearheading this initiative said he expects the assets under management of its offshore funds to grow to $1.5 billion over the next 3-5 years.
The new joint venture will be 51:49, scrapping the earlier shareholding structure of 74:26. Nikko and Ambit’s mutual fund business has been delayed since they jointly announced in December 2006.The reason for the venture not taking off was due to market conditions, Ashok Wadhwa said on Monday.
“Nikko will now hold 51% in the joint venture while Ambit will hold the remaining stake in the domestic mutual fund business,” said Ashok Wadhwa, Group CEO of Ambit on the sidelines of the conference, on the launch of its investment advisory business with Nikko.
“In this competitive landscape to scale up is a challenge,” Wadhwa said. “Last month Nikko Asset Management India under the new shareholding pattern re-filed their application with market regulator Sebi,” he said.
Besides, the mutual fund business Ambit has also entered into a joint venture with Nikko to expand their off-shore capabilities. On Monday, Ambit Holdings and Nikko Asset Management announced their new joint ventures in India and Mauritius.
Under the new arrangement, Nikko Asset Management has picked up a 50.1% equity stake in Ambit Mauritius Investment Managers and a 49% stake in Ambit Investment Advisors for an undisclosed amount. Both the parties will manage and advise dedicated India funds with an initial corpus of $150 million.
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Andrew Holland who will be spearheading this initiative said he expects the assets under management of its offshore funds to grow to $1.5 billion over the next 3-5 years.
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