Standard Chartered gains 49pc in UTI Securities

By Staff
|
Google Oneindia News

New Delhi, Aug 23: In a major takeover, Standard Chartered Bank Plc today aquired 49 per cent stake in UTI Securities Ltd for around 36 million dollars in an all-cash deal with the Securities Trading Corporation of India Ltd.

Sources from UTI Securities say that Standard Chartered has options to raise its stake in stages to 100 per cent by 2010.

Standard Chartered Bank's proposal to acquire a 49 per cent stake in UTI Securities Ltd for Rs 147 million had been given the go ahead by Finance Minister P Chidambaram and Foreign Investment Promotion Board (FIPB) in its meeting held on August 17.

Sources add that Standard Chartered was actively looking at entering the lucrative financial services sector after it had sold its mutual funds management business to UBS on January 26, 2007.

In February 2006, UTI Securities Ltd, which was the brokering and investment-banking arm of the Specified Undertaking of Unit Trust of India (SUUTI) had been acquired by Securities Trading Corporation of India (STCI).

The deal was then struck at Rs 265 crore, where all the three crore equity shares of UTI Securities were bought at around Rs 88 per share.

UNI

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