Religare-Aegon JV hits roadblock on Lotus MF buy?
Dutch financial major Aegon and Religare Enterprises' mutual fund joint venture appears to be falling apart, within a month of the Malvinder Singh-promoted Indian partner acquiring Lotus Mutual Fund in a 'dirt-cheap' deal.
By PTI |
NEW DELHI: Dutch financial major Aegon and Religare Enterprises' mutual fund joint venture appears to be falling apart, within a month of the Malvinder Singh-promoted Indian partner acquiring Lotus Mutual Fund in a 'dirt-cheap' deal.
Liquidity crunch and mounting losses in its home and other global markets is speculated to be the reason for the foreign partner to consider exiting from the venture, sources in the know of the development said.
While no comments could be obtained from Aegon on a e-mailed questionnaire, Religare officials could not be contacted.
In the midst of the Indian mutual fund industry falling prey to liquidity crisis, Religare Enterprises earlier this month said it is acquiring 100 per cent of Lotus Mutual Fund, which is currently subject to certain approvals.
While the valuation of the deal is not yet known, the analysts termed the deal as a 'bargain buy' in the current market conditions and said it would give the 50-50 JV between Religare and Aegon a headstart of about two years in the mutual fund market.
Sources said that Religare would still go ahead with its Lotus MF acquisition, even if Aegon pulls out of the mutual fund JV as the company believes that it has struck a deal at an attractive valuation and it would help it expand presence in the market.
Liquidity crunch and mounting losses in its home and other global markets is speculated to be the reason for the foreign partner to consider exiting from the venture, sources in the know of the development said.
While no comments could be obtained from Aegon on a e-mailed questionnaire, Religare officials could not be contacted.
In the midst of the Indian mutual fund industry falling prey to liquidity crisis, Religare Enterprises earlier this month said it is acquiring 100 per cent of Lotus Mutual Fund, which is currently subject to certain approvals.
While the valuation of the deal is not yet known, the analysts termed the deal as a 'bargain buy' in the current market conditions and said it would give the 50-50 JV between Religare and Aegon a headstart of about two years in the mutual fund market.
Sources said that Religare would still go ahead with its Lotus MF acquisition, even if Aegon pulls out of the mutual fund JV as the company believes that it has struck a deal at an attractive valuation and it would help it expand presence in the market.
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However, another joint venture between Aegon and Religare and other investors, which is in the insurance business, is said to be safe as there is a 10-year lock-in commitment between the partners.Download
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