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Last Updated : May 10, 2018 06:48 PM IST | Source: Moneycontrol.com

BlackRock leads race to acquire IDFC AMC; Reliance MF out of fray

The first round of bidding for the acquisition which closed on May 8, received bids between Rs 3,500 crore and Rs 4,000 crore.

Himadri Buch @himadribuch

Global asset manager BlackRock Inc has emerged as a front runner to acquire IDFC Asset Management Company, sources told Moneycontrol.

The first round of bidding for the acquisition, which closed on May 8, received bids between Rs 3,500 crore and Rs 4,000 crore.

Among the companies that bid for IDFC AMC were Reliance Mutual Funds, Mirae Asset Global Investments (India) IndusInd Bank and BlackRock Inc. Of these, Reliance MF is said to have bid at Rs 4,000 crore for the AMC which is in line with the promoter, IDFC Financial Holding Company.

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The fund house did not reply to a mail sent by Moneycontrol.

According to sources, IDFC Financial Holding is not keen on selling stake to an existing AMC as it may result in job losses at IDFC AMC.

As of March 31, 2018, IDFC Mutual Fund’s assets under management stood at Rs 70,000 crore.

Sources further told Moneycontrol that in a bid to retain senior management and ensure continuity until the transition is over, the company has put in place a retention strategy in the form of employee stock ownership plan (ESOPs).

On Monday, BlackRock agreed to sell 40 percent stake in DSP BlackRock Investment Managers to DSP Group.

DSP BlackRock Investment Managers is the asset management company of DSP BlackRock Mutual Fund.

In March 2017, IDFC Financial Holding Company, a subsidiary of IDFC Ltd, had agreed to buy back a 25 percent stake in IDFC AMC from Paris-based Natixis Global Asset Management for Rs 244.24 crore.

IDFC AMC, established in 2000 is among the top 15 mutual fund firms in India.
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First Published on May 10, 2018 06:48 pm
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