StanC AMC marathon: IDFC, Shinsei lead race
The race to acquire Standard Chartered Mutual Fund has entered the last leg, with IDFC and Japanese group Shinsei emerging as frontrunners in what has been a long drawn race.
By TNN |
MUMBAI: The race to acquire Standard Chartered Mutual Fund has entered the last leg, with Infrastructure Development Finance Corporation (IDFC) and Japanese group Shinsei emerging as frontrunners in what has been a long drawn race. Other players, still in the race, are French bank Credit Agricole and Korean fund house Mirae Asset Management.
According to informed sources, the top management of Stanchart AMC is meeting in London this week on the deal. After the deal with Swiss banking group UBS fell through, Standard Chartered Plc invited fresh bids. Following this, close to 20 players, largely international, had shown interest.
A few weeks ago, StanChart shortlisted around seven players. The minimum bid price was $175 million against the base level of $137 million, quoted by StanChart. IDFC is said to have initially bid $175 million, but reportedly revised its bid to $200 million.
Shinsei is also said to have bid around $200 million. While industry circles believe that StanChart may be more keen to sell out the AMC to an overseas party since it could mean a broader platform and possible tie-up to distribute funds internationally, it may not be averse to a domestic institution if the price is right. A local institution may be quicker in getting the regulatory approvals.
As on February 29, 2008, Standard Chartered MF���s assets under management (AUM) stood at Rs 14, 180 crore. Roughly $ 1 billion (approx Rs 4,000 crore) of this is equity.
StanChart MF entered equities around two-and-a-half years ago, and has around eight equity funds ��� the StanChart Classic (a multi-cap fund), StanChart Premier Fund (a mid- & small-cap fund), StanChart Imperial (a large-cap fund), StanChart Enterprise Fund (that largely invests in IPOs), the ELSS fund ( a close-ended fund), the StanChart SME fund and two arbitrage funds (one open-ended and the other close-ended).
According to informed sources, the top management of Stanchart AMC is meeting in London this week on the deal. After the deal with Swiss banking group UBS fell through, Standard Chartered Plc invited fresh bids. Following this, close to 20 players, largely international, had shown interest.
A few weeks ago, StanChart shortlisted around seven players. The minimum bid price was $175 million against the base level of $137 million, quoted by StanChart. IDFC is said to have initially bid $175 million, but reportedly revised its bid to $200 million.
Shinsei is also said to have bid around $200 million. While industry circles believe that StanChart may be more keen to sell out the AMC to an overseas party since it could mean a broader platform and possible tie-up to distribute funds internationally, it may not be averse to a domestic institution if the price is right. A local institution may be quicker in getting the regulatory approvals.
As on February 29, 2008, Standard Chartered MF���s assets under management (AUM) stood at Rs 14, 180 crore. Roughly $ 1 billion (approx Rs 4,000 crore) of this is equity.
StanChart MF entered equities around two-and-a-half years ago, and has around eight equity funds ��� the StanChart Classic (a multi-cap fund), StanChart Premier Fund (a mid- & small-cap fund), StanChart Imperial (a large-cap fund), StanChart Enterprise Fund (that largely invests in IPOs), the ELSS fund ( a close-ended fund), the StanChart SME fund and two arbitrage funds (one open-ended and the other close-ended).
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