L&T Finance Holdings (LTFH) and HSBC Asset Management (India) (HSBC AMC) have entered into a definitive agreement whereby HSBC AMC shall acquire 100% equity shares of L&T Investment Management (LTIM), a wholly owned subsidiary of LTFH, which is the investment manager of L&T Mutual Fund, for an aggregate purchase consideration of $425 million (subject to adjustments as set out in the definitive agreements).
In addition, LTFH will also be entitled to excess cash in LTIM until the completion of the acquisition. The transaction is subject to the requisite regulatory approvals. Both LTIM and HSBC AMC will work to ensure that there will be continuity of services to their investors and counter-parties in the interim.
The divestment of Mutual Fund business is in line with the strategic objective of L&T Finance Holdings of unlocking value from its subsidiaries to strengthen its balance sheet.
L&T Finance Holdings is a financial holding company offering a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services, through its direct and indirect wholly-owned subsidiaries.
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Shriram Finance | 2370.00 |
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