Date:12/03/2005 URL: http://www.thehindubusinessline.com/2005/03/12/stories/2005031201740600.htm

Back ICICI Bank hikes stake in Prudential MF

Our Bureau

Mumbai , March 11

ICICI Bank Ltd is hiking its stake in Prudential ICICI Mutual Fund to 51 per cent to become the majority shareholder of the asset management company.

The bank has informed the stock exchange that it has agreed in-principle to purchase an additional 6 per cent of the paid-up equity capital of Prudential ICICI AMC.

This will bring the holding of the bank in the AMC to 51 per cent, leaving Prudential with 49 per cent.

Currently, Prudential holds 55 per cent of the capital of the company, while ICICI Bank owns 45 per cent.

Market valuations for deals in the mutual fund space have been between 4-6 per cent of total assets under management and this deal will also be in that range, ICICI Bank said. The exact amount has not been specified. The paid-up equity capital of the company is Rs 18.5 crore.

The transaction is subject to approval of SEBI.