IDFC to buy Natixis’ stake in MF unit for ~244 cr

Financial services major IDFC has decided to buy Natixis Global Asset Management's 25 per cent stake in IDFC Mutual Fund for over ~244 crore.

The shares will be purchased through IDFC Financial Holding Company, a wholly-owned subsidiary of IDFC.

"The transaction is in line with the terms of the shareholders’ agreement that we signed with Natixis six years ago," IDFC Managing Director and Chief Executive Officer Vikram Limaye told PTI.

IDFC Financial Holding Company holds 75 per cent stake of IDFC Asset Management Company (AMC) and IDFC AMC Trustee Company. The remaining 25 per cent stake is held by Natixis. In December 2010, Natixis had entered into a share purchase agreement to pick stake in IDFC AMC and IDFC AMC Trustee.

As part of the agreement, there was a requirement that both shareholders would review the partnership at the end of five years. Following a review clause

in the agreement, IDFC "agreed to acquire through IDFC Financial Holding Company the balance stake (about 25 per cent) in IDFC AMC and IDFC AMC Trustee from Natixis Global Asset Management", the financial major said in a filing.

It has agreed to buy the stake for ~244.24 crore.

The deal, subject to regulatory approvals, is expected to conclude by the end of this month.

IDFC AMC is among the top 10 firms in the mutual fund space with an assets base of ~57,998 crore at the end of December quarter. The turnover of the fund house stood at ~325 crore at the end of March 31, 2016.

Currently, there are 42 players in the mutual fund industry that manage assets worth more than ~17 lakh crore.