On December 2, 2020 Bank of India(BOI) entered into a Share Purchase Agreement (SPA) with AXA Investment Managers Asia Holdings Pvt Ltd (AXA IM), a part of AXA Group. Through the SPA, BOI agreed to purchase AXA IMs:
- Entire 49% equity shares in BOI AXA Investment Managers Private Limited (BAIM).
- Entire 49% equity shares in BOI AXA Trustee Services Private Limited (BATS).
Points to be Noted
i.Currently, BOI holds 51% equity shares each in BAIM and BATS.
ii.Following the transaction, BOI will hold 100% equity shares in BAIM and BATS, i.e., both the entities will become BOI’s fully owned subsidiaries.
About the Transaction
i.The transaction is proposed to be done on a cash basis.
ii.It will be completed by the end of December 2020 or another extended date mutually agreed between the BOI and AXA IM.
BOI, in addition to having full control of BAIMS and BATS, will grow the asset management business by enhancing the BOI brand and distribution strength.
- As on September 30, 2020 the Government of India holds 89.10% stake in BOI.
- AXA IM is a promoter of BAIM and BATS.
- BALM has Rs 2,251 crore worth of assets under management, as of 30 September 2020. It offers 14 different open ended schemes and 2 close ended schemes.
BATS was incorporated on 13 August, 2007. It’s headOffice is in Mumbai, Maharashtra.
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About Bank of India(BOI):
Incorporated– September 7 1906
Managing Director & CEO– Shri Atanu Kumar Das
Tagline-Relationship Beyond Banking
About BOI AXA Investment Managers Private Limited(BAIM):
Chief Executive Officer(CEO)– Sandeep Dasgupta
Headquarters– Mumbai, Maharashtra