Sundaram Asset Management acquires Principal AMC in India

Mumbai, Jan 29 (Agency) Sundaram Asset Management Company Limited, a 100 pc subsidiary of Sundaram Finance Ltd said that it has acquired the asset management businesses of Principal Asset Management Pvt. Ltd. Sundaram will acquire the schemes managed by Principal Asset Management Pvt. Ltd and acquire 100 pc of the share capital of Principal Asset Management Pvt. Ltd., Principal Trustee Company Pvt. Limited, and Principal Retirement Advisors Pvt. Ltd. The transaction is subject to the receipt of necessary regulatory approvals and SEBI prescribed processes, and Principal will continue to operate the businesses until the deal is closed.

Commenting on the acquisition, Mr. Sunil Subramaniam, Managing Director, Sundaram Asset Management Company said, “This transaction will strengthen our presence in the marketplace with the addition of a range of schemes with a good long term performance track record across the large and mid-cap segments. This will complement our business which has traditionally been weighted towards the mid-and small-cap segment.” Mr. Pedro Borda, chief operating officer, Principal International said, “As part of a systemic review of the company’s portfolio of businesses and global market dynamics, we’ve made the decision to exit the asset management business in India. As we transition the business, customers and distributors will remain our top priority. We believe they will benefit rom Sundaram Asset Management’s larger mutual fund platform in this market.” Mr. T.T. Srinivasaraghavan, Managing Director of Sundaram Finance added, “this acquisition is a natural step in our aspiration to become a sizeable player in the asset management industry. We will be able to leverage the combined platform to derive significant synergies. The focus for us will be on delivering a better experience to our investors and distribution partners.”

The transaction is subject to approval from SEBI and other regulators, and both Sundaram and Principal will work to ensure that there will be no disruption of service to their partners and investors in the interim, and a seamless transfer once approval is obtained. Principal said it is committed to the continued operation of Principal Global Services in Pune and Hyderabad to provide critical technical support and services to its offices around the globe. JM Financial Limited acted as the exclusive financial advisor and J. Sagar Associates acted as the legal advisors to Sundaram Asset Management Company. Barclays acted as the exclusive financial advisor and Cyril Amarchand Mangaldas as the legal advisors to Principal.