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Mumbai, March 31 JM Financial Consultants Private Ltd (a wholly-owned subsidiary of JM Financial Ltd, a listed company), has got its board’s approval to buyout the remaining stake from its joint venture JM Financial ASK Securities Private Ltd. JM Financial Consultants currently has 60 per cent stake in the joint venture, which would go up to 100 per cent, making it a 100 per cent subsidiary of the company.

According to a press release from the company, the name of JM Financial ASK Securities Pvt Ltd would be changed after closing of the transaction and subject to necessary regulatory approvals.

With the proposed acquisition of the remaining stake, JM Financial Consultants Private will now own 100 per cent in the institutional equities business for a total consideration of Rs 139.14 crore. Early last year, JM Financial sold its 49 per cent equity stake in its institutional equity business to Morgan Stanley for $445 million (approx. Rs 1,767 crore). In October 2007, JM Financial Consultants Private Ltd entered into a joint venture with ASK group by acquiring a 60 per cent stake in ASK Securities. In a press release, Mr Nimesh Kampani, Chairman JM Financial Group, said: “This acquisition is part of our on-going strategy to provide our clients the entire bouquet of financial services and to continue to strengthen the JM Financial brand as a leading financial services organisation. It is an important milestone for our group and we believe this acquisition will help integrate our capital markets business further. This acquisition reflects and reiterates our determination to act in the best interest of our clients, our shareholders, our employees and our other stakeholders”. Meanwhile, ASK Group, has filed an application with SEBI to start its own asset management company.

Commenting on the development, Mr Asit Koticha, Chairman, ASK Group, said: “We have recently applied to SEBI for our asset management company licence. We have decided to focus on our portfolio management and wealth advisory businesses that cater to our ultra high networth individual clients.”

The group’s portfolio management business ASK Investment Managers and wealth advisory company ASK Wealth Advisors along with the AMC business will be driving the group’s growth, the company said.

More Stories on : Mergers & Acquisitions | Financial Services

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