Sundaram Asset Management Company on Friday said it has received Sebi nod to acquire Principal Asset Management Company in India.
The fully-owned subsidiary of Sundaram Finance will acquire the schemes managed by Principal India and 100 per cent of the share capital of Principal Asset Management Pvt. Ltd., Principal Trustee Company Pvt. Limited, and Principal Retirement Advisors, as per an official statement.
The deal, consideration for which was not disclosed, was first announced on January 28. Final regulatory approvals have been received from the capital markets watchdog and also Competition Commission of India (CCI), it said.
As per regulatory requirements, there will be an 'exit load free window' for investors to redeem their investments, where such exit load is applicable, the statement noted. Schemes currently managed by Principal India and Sundaram will either be merged or renamed as Sundaram schemes in their respective categories while investors and distributors of Principal India schemes will become investors/distributors of Sundaram, it said, specifying that the total combined investor base is 20 lakh at present.
''This acquisition is a natural step in our aspiration to become a sizeable player in the asset management industry. The combined business of both the entities will achieve an aspirational landmark of Rs 50,000 cr,'' Harsha Viji, the executive vice-chairman of Sundaram Finance, said.
Pedro Borda, Chief Operating Officer of Principal International said the top priority right now is the transition for the customers, distributors and employees.
“We look forward to complementing our existing Equities fund management talent with the addition of the team from Principal India. We endeavour to retain and absorb Principal India's distribution franchise with minimal disruption to their commercial terms,'' Sunil Subramaniam, Managing Director, Sundaram Asset Management Company, said.
