T-Rowe Price puts highest bid for UTI AMC stake: Sources

CNBC-TV18 learns that USA-based T-Rowe Price has put in the highest bid for UTI Asset Management's 26% stake.CNBC-TV18's Vidhi Godiawala reports.

 

Here is a verbatim transcript of Vidhi Godiawala's comments on CNBC-TV18. Also watch the accompanying video.

 

USA-based T-Rowe Price has made the highest bid for UTI Asset Management's 26% stake sale. That is what we are picking up from our market sources.

 

We learn that T-Rowe Price has offered UTI AMC anywhere between 4-4.5% of its assets under management (AUM). The deal has reached the board level for the discussions as well. UTI AMC's average assets under management as on May, 2009 was about Rs 63,440 crore. The deal values UTI AMC between Rs 2,540 crore and Rs 2,855 crore and T-Rowe Price is offering anywhere between Rs 660 crore and Rs 740 crore for this 26% stake sale.

 

We also see that this valuation, that T-Rowe Price is offering UTI, is much higher than what Nomura offered LIC Mutual Fund for its 35% stake sale. They offered roughly about 3% or about Rs 306 crore for 35% stake and the combined assets of T-Rowe Price-the group companies-stands at about USD 269 billion as on March 31, 2009. However, UTI sources are telling us that the deal is yet in the process and will be finalised soon.