Financial Daily from THE HINDU group of publications
Thursday, Jul 04, 2002
Financial Daily from THE HINDU group of publications Thursday, Jul 04, 2002 |
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Money & Banking
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Financial Institutions IDBI seeks Rs 45 cr for selling stake in AMC Our Bureau
MUMBAI, July 3 INDUSTRIAL Development Bank of India (IDBI) has reportedly sought close to Rs 45 crore to sell about 21 per cent stake in IDBI Principal AMC to its joint venture partner, the US-based Principal Financial Group. IDBI has valued its stake at a little over Rs 200 per share, top institutional sources said. According to them, Principal was keen on increasing its stake to 51 per cent. Currently, the AMC is a 50:50 joint venture between the US company and the Indian financial institution. The officials said negotiations are on but admitted that the deal may take some time to materialise. IDBI, however, was not keen on parting with a mere one per cent stake and surrender its control in the AMC. "We offered them (Principal) another 20 per cent stake as the control will any way be given to them if we sell one per cent. Of course, they will have to pay a control premium,'' said a top official. The US company had initially bought the 50 per cent holding in the AMC at a premium of Rs 80 per share of face value Rs 10. Principal had sought to increase its stake by one per cent in order to consolidate its accounts globally under US GAAP. IDBI Principal AMC manages about Rs 1,500 crore under 17 schemes.
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