On Friday, gold financing NBFC company Muthoot Finance has said that it will take over IDBI Asset Management for venturing into the mutual fund space. The financial consideration of the deal will be Rs. 215 crore.
The statement by the company said that subject to market regulator SEBI, the deal is likely to be completed by February 2020. Muthoot Finance said it has "entered into a definitive agreement to acquire IDBI Asset Management (AMC) and IDBI MF Trustee Company".
Post the deal, the NBFC company will buyout complete equity of IDBI AMC and IDBI MF Trustee Company held by the sellers."At Muthoot we pride ourselves in venturing into mutual fund space through such an established player.The business objectives and customer centric approach that we follow within Muthoot Group is well aligned with the business objectives of mutual fund industry. We are excited to venture into this new path in the financial services space," Muthoot Finance MD George Alexander Muthoot said.
ICICI Securities were the advisors in the transaction. AZB & Partners has been the legal advisor to Muthoot Finance, while J Sagar Associates acted as the legal advisor to the sellers.