Chola DBS sells MF biz to L&T Fin
TIMES NEWS NETWORK Chennai/Mumbai: Cholamandalam DBS Finance (CDFL) has sold its mutual fund (MF) business to L&T Finance. The two firms signed a memorandum of understanding (MoU) for the sale of CDFL's 100% shareholding in DBS Cholamandalam Asset Management (DCAM) for a consideration of Rs 45 crore on Friday. Founded in 1996, DCAM, a joint venture between the Chennai-based Murugappa group and DBS Bank of Singapore, has emerged as the 10th largest fund house in terms of assets. It has assets under management (AUM) of about Rs 2,900 crore and manages 24 schemes. It has about two lakh customer accounts. "Considering its own longer term vision for core businesses, CDFL has decided to exit the asset management business," a company statement said. N Sivaraman, director (Finance), L&T told TOI, "It is a rigorous process to build an mutual fund business from scratch, which includes getting regulatory approvals. The process could take anywhere from 12 to 18 months. Rather than being in the queue, the DBS Cholamandalam acquisition gives L&T Finance a ready platform for growth." --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
