Templeton To Acquire ITI’s 48% Stake In Pioneer ITI AMC

Chennai, July 25: | Updated: Jul 26 2002, 05:30am hrs
Templeton Asset Management India (Pvt) Ltd (Templeton) will buy out the 47.7 per cent stake held by Investment Trust of India Ltd (ITI) in Pioneer ITI AMC Ltd for a consideration of Rs 104 crore.

A share purchase agreement has been entered into between ITI and Templeton and the sale consideration is subject to adjustment, if any, on various contigencies, according to a Madras Stock Exchange news release.

The proposal has been cleared by the board of trustees of the AMC and ITI. The Sebi approval is awaited for the stake sale. ITI holds 37.65 lakh shares in the AMC and the rest is held by Pioneer Management Inc and employees of the AMC.

The per share value works out to be Rs 276 per share and the enterprise value of the AMC is pegged at Rs 218 crore.

Pioneer ITI AMC is the first private sector AMC in the country. It launched its first fund in October 93. It has Rs 3,800 crore under management and manages 29 schemes.

It has 7,45,000 investors under its fold. The product range includes growth, balanced, income, liquid and tax saving funds.