IDFC bags Standard Chartered AMC for USD205 million

Standard Chartered PLC announces that it has agreed to sell Standard Chartered AMC Private Limited, including minorities, to Infrastructure Development Finance Company Limited (IDFC) for a total cash consideration of approximately USD205 million. The consideration is before deductions for local taxes and deal expenses. The transaction does not include Standard Chartered's mutual fund distribution business which Standard Chartered will continue to pursue.

Jaspal Bindra, Chief Executive Officer, Asia, Standard Chartered, said: “IDFC is a well respected financial services company and we are delighted to have reached an agreement with them for the sale of this business. Standard Chartered will remain a distributor of asset management products in India. India is a key market and delivered record results in 2007.”

This was for the second time that Standard Chartered Asset Management business was up for sale after the UBS deal was called off by the Reserve Bank in December last year, citing regulatory issues. This time Standard Chartered did manage to up the price by USD87 million from USD118 million agreed upon earlier with UBS.

IDFC will be paying USD205 million for Standard Chartered's USD3.25 billion AUM. The transaction of course subject to certain regulatory approvals and other closing conditions, and both parties expect to seal the deal in the second quarter of 2008.

Dr. Rajiv Lall, Managing Director and Chief Executive Officer of IDFC said: “We are pleased to acquire a quality asset management platform. This is in line with our wider strategy of broadening our footprint in the asset management business and diversifying our fee-based revenue streams.”

Incorporated in March 2000, Standard Chartered AMC had a total of USD3.25 billion, as on January 31, 2008 out of which 22 per cent was in equities and the remaining in debt.