IDFC, one of India’s leading financial services provider, has voiced intentions of increasing its stake in IDFC Mutual Funds AMC by purchasing the 25% stake of Natixis Global Asset Management for an amount equal to Rs. 244.24 crores. This purchase will be carried out through IDFC’s completely owned subsidiary, the IDFC Financial Holding Company.
This transaction follows from an earlier agreement between the two companies that the 75%-25% partnership between IDFC and Natixis would be reviewed by shareholders after completion of a 5 year period. Subsequent to the review, IDFC has decided to buy out the Natixis stake in IDFC Mutual Funds. As a result of this acquisition, IDFC would be able to explore the possibility of strategic alliances with other partners in the future.
As of now, this deal is subject to mandatory regulatory approvals that are expected to be available by end March. IDFC Mutual Funds AMC is ranked among the top 10 players in the India’s mutual funds segment with assets valued at Rs. 57,998 crores as of December 2016. Currently, IDFC Mutual Funds is focused on aggressively expanding its portfolio management services business and the company also manages a wide range of debt and equity funds.