Housing finance firm Dewan Housing Finance (DHFL) on Tuesday said it will sell its entire stake in mutual fund business DHFL Pramerica Asset Managers to its 50:50 joint venture partner US-based Prudential Financial (PFI).
DHFL did not announce the valuation of the deal. This transaction is subject to signing of definitive documentation, customary closing conditions and regulatory and other approvals.
DHFL holds a 50% stake in the mutual fund business — 17.12% directly and 32.88% through its subsidiary DHFL Advisory and Investments, it said a stock exchange filing.
“This is a strategic call by DHFL to focus more on our core business. We firmly believe that this move is in the best interest of all parties and will have a positive outcome for all stakeholders.” added Kapil Wadhawan, chairman and managing director, DHFL.
Data from Association of Mutual Funds in India (Amfi) showed average assets under management (AAUM) of DHFL Pramerica mutual funds for the July-September quarter stood at `22,699.97 crore. Pramerica Financial (Pramerica) is a brand name used by PFI of the United States and transaction would make DHFL Pramerica Asset Managers a wholly-owned business of PGIM, the global asset management business of PFI.
“We see tremendous opportunity in the asset management market in India and are very excited to be entering this next phase of growth,” said Glen Baptist, CEO of PGIM Global Partners.
“Our expanded investment demonstrates our deep commitment to this market and confidence in both our talented leadership team and robust investment process. We strongly believe that when combined with the deep expertise and broad capabilities of PGIM, we are well positioned to serve our clients and to strengthen our competitive position in India.”