Moneycontrol
Aug 10, 2017 09:24 PM IST | Source: Moneycontrol.com

Union Bank to sell 40% of mutual fund business to Japan's Dai-chi

Speaking to media soon after the board meeting, Rajkiran Rai G, managing director and CEO of the bank said that board has given "approval to partner with Dai-ichi. The details are yet to worked out."

Union Bank to sell 40% of mutual fund business to Japan's Dai-chi

Beena Parmar

Moneycontrol News

Union Bank of India has signed an in principle agreement with Japan-based Dai-ichi Life insurance firm to sell 40 percent stake in the bank's wholly-owned asset management company.

Speaking to media soon after the board meeting, Rajkiran Rai G, managing director and CEO of the bank said that board has given "approval to partner with Dai-ichi. The details are yet to worked out."

This will mark the Japanese firm's entry into India's booming mutual fund industry.

Without elaborating on the deal size, Rai said, "We have to yet work out the details on pricing. The proceeds could go to the company as it would be fresh issuance of shares."

Earlier, Union Bank had tied up with KBC Participations Renta to form KBC Asset Management company where the Belgian firm had 49% in for asset management business.

In September 2016, KBC sold its entire stake in mutual fund to Union Bank of India.
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