The uncertainty may finally be over for UTI Mutual Fund. Out of the five suitors (T Rowe Price, Vanguard Mutual Fund, Schroders, HSBC and an Australian bank) vying with each other for a piece of India's fourth-biggest and most-profitable fund house, T Rowe Price has emerged as the winner.
The U.S.-based investment management firm has reportedly agreed to buy a 26 per cent stake in UTI Asset Management Company for a consideration of Rs 650-700 crore, reports The Economic Times.
The deal has thereby valued the AMC at between 4-5 per cent of assets under management. UTI MF controls about Rs 68,000 crore in its debt and equity schemes.
New infusion of equity has not been considered for the stake sale, instead UTI MF stake holders, including State Bank of India, LIC, Bank of Baroda and PNB, will sell a part of their stake. The amount of stake they will sell is 6.5 per cent each.
T Rowe Price looks to have won by a photo finish as the winning bid submitted by it was just a little over those by Schroders Investment Management and Vanguard.