Bank of India acquires 49 pc stake in subsidiaries
Mumbai/IBNS: Public sector lender Bank of India (BOI) has said it will acquire 49 per cent stake in each of its subsidiaries BOI AXA Investment Managers Pvt Ltd and BOI AXA Trustee Services Pvt Ltd.
After the acquisition, BOI AXA Investment Managers Pvt Ltd (BAIM) and BOI AXA Trustee Services Pvt Ltd (BATS) will become its fully owned subsidiaries.
After BOI said it will buy the remaining 49 per cent shares in its two subsidiaries, the bank's shares traded 4 per cent higher on intraday.
In a regulatory filing, the bank said, "Bank of India has amongst other parties entered into a share purchase agreement (SPA) 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 per cent in BAIM."
Bank of India held 51% equity shares each in BAIM and BATS, said a Mint report.
"Pursuant to this transaction, Bank of India shall hold 100 per cent equity shares in BAIM and BATS. The transaction is done at arms-length basis," Bank of India said.
The transaction, which will be done on a cash basis, would be completed by the end of 2020 or another later date as agreed both by AXA IM and BOI.
According to a Mint report, the bank said the strategic acquisition of 49 per cent stake of AXA IM in BAIM and BATS will enable the lender to have complete control and grow the asset management business by leveraging its network and brand image.
AXA IM, an investment arm of AXA Investment Managers, is a promoter of BAIM and BATS. AXA IM is one of the world's top asset managers backed by the AXA, added the report.