Union Bank of India is acquiring its partner KBC Asset Management’s 49% stake in two joint ventures – Union KBC Asset Management Co. Pvt. Ltd. and Union KBC Trustee Company Private Ltd, the bank disclosed in a BSE filing on Monday.
The deal size was, however, not disclosed.
The board of directors of Union Bank of India in its meeting held on August 26, 2015 has approved in principle subject to regulatory approvals the purchase of 49% stake in Union KBC Asset Management, and Union KBC Trustee Company from KBC Participations Renta (a group company of KBC Asset Management NV), a shareholder of the said companies, the statement said.
Union Bank forayed into mutual fund business by establishing these two joint ventures with KBC Participations Renta in 2009. Union Bank of India and KBC Participations Renta were so far holding 51% and 49% stake, respectively, in the two ventures.
Post acquisition, both Union KBC Asset Management and Union KBC Trustee Company would become wholly owned subsidiaries of Union Bank of India, the statement said.
Union Bank of India is one of largest state-owned banks in India with the presence in segments including treasury operations, retail banking operations, corporate wholesale banking, among others.
The bank’s shares traded up 4.83% to Rs 182.35 at 16.00 IST on BSE on Monday.