L&T Finance, a subsidiary of engineering and construction firm Larsen & Toubro, today said it would acquire mutual fund company DBS Cholamandalam Asset Management for Rs 45 crore to build a robust asset management business.
L&T Finance signed an agreement with Cholamandalam DBS Finance for the purchase of the mutual fund, L&T Finance informed the Bombay Stock Exchange.
It said the acquisition would be for the valuable consideration of Rs 45 crore adjusted for cash balance and current assets as of date of closing.
The transaction is subject to appropriate regulatory approval, it added.
The average assets under management of the fund house was Rs 2,893 crore as of August 31, 2009.
L&T Finance said the acquisition would help synergise with its existing financial services business and deepen and widen the services. DBS Cholamandalam has a professional team with a vast experience in asset management business.
L&T Finance also said the brand and reach will enable building a robust and valuable asset management business.
Shares of the L&T closed at Rs 1645.90, down by 0.71 per cent on the Bombay Stock Exchange.