Mumbai, March 16 (PTI): HDFC Asset Management Company has acquired Zurich Asset Management Company for an undisclosed amount, subject to necessary regulatory approvals.
“This acquisition is consistent with our strategy of continuing the momentum in the growth of HDFC Mutual Fund’s business and adds to the proportion of equity funds managed,” HDFC chairman Deepak Parekh said in a release here today after the memorandum of understanding was signed in London.
Zurich Financial Services Asia Pacific CEO Sandy Leitch said, “The decision to sell this business has been taken in light of our recently announced strategy to allocate capital to core life and non-life insurance markets in order to generate sustained profitable growth,” mentioned a release issued by HDFC.
The HDFC board had decided on Saturday to divest up to 10 per cent stake in the asset management company and infuse a maximum Rs 65 crore fresh capital to facilitate an acquisition. This additional infusion would be made through equity or preference shares.
HDFC Mutual Fund is a joint venture with Standard Life Investments Ltd (UK) with assets under management of Rs 6,905 crore while assets under management of Zurich India were at Rs 3,332 crore as on February 2003.