Bank of India on Thursday said it will acquire a 49% stake each in BOI AXA Investment Managers Pvt Ltd and BOI AXA Trustee Services Pvt Ltd.
Following the transaction, both the entities, BOI AXA Investment Managers Pvt Ltd (BAIM) and BOI AXA Trustee Services Pvt Ltd (BATS) will become Bank of India’s fully owned subsidiaries.
“Bank of India has amongst other parties entered into a share purchase agreement with AXA Investment Managers Asia Holdings Pvt Ltd (AXA IM) on December 2, 2020, whereby the bank has agreed to purchase AXA IM’s entire 49% in BAIM,” the bank said in a regulatory filing.
Besides, it has also entered a SPA to purchase the entire 49% equity shares in BATS, it added.
Bank of India holds 51% equity shares each in BAIM and BATS.
“Pursuant to this transaction, Bank of India shall hold 100% equity shares in BAIM and BATS. The transaction is done on an arms-length basis,” Bank of India said.
BAIM had a total turnover of Rs 25.45 crores in the last fiscal year. While BATS had a total turnover of Rs 0.12 crore.
Bank of India said the strategic acquisition of a 49% stake of AXA IM in BAIM and BATS shall enable it to have complete control of BAIM and BATS and grow the asset management business by leveraging on the BOI brand and distribution strength.
The transaction, to be done on a cash basis, is proposed to be completed by end of December 2020, or another extended date mutually agreed between the lender and AXA IM, it added.