Bank of India (BoI) will buy a 49 percent stake each in BOI AXA Investment Managers Pvt Ltd (BAIM) and BOI AXA Trustee Services Pvt Ltd (BATS) from AXA investment Managers Asia Holdings Pvt Ltd (AXA IM). After the procurement both BAIM and BATS will be wholly owned subsidiaries of Bank of India. The transaction will be on a cash basis and the bank is planning to finish it by the end of December 2020. There is also a possibility for an extended date as per the agreement between the lender and AXA IM.
The agreement of Bank of India with AXA IM to purchase their 49% share in both BAIM and BATS was made on December 2, 2020. As per this transaction, The Bank of India shall possess 100% equity shares in BAIM and BATS. But currently, they have only 51% of equity shares in BAIM and BATS. BOI AXA Trustee Services Private Limited is a subsidiary of a foreign company which was incorporated on 13 August 2007. The company is a private unlisted company and is classified as a company limited by shares.
In the last fiscal year, the total turnover of BAIM was Rs 25.45 crore. At the same time, BATS had a total turnover of ₹. 0.12 crore. The officials of Bank of India commented that the strategic acquisition of AXA IM in BAIM and BATS with a stake of 49% will help them to take the control of BAIM and BATS. By this, they can develop their Asset Management business by supporting the brand and distribution strength of BOI. Bank of India (BOI) is an Indian commercial bank headquartered in Mumbai. The bank has been government-owned since the nationalisation which was happened in 1969.
AXA Investment Managers Asia Holdings Pvt Ltd is a booster of BAIM and BATS. AXA IM is an investment arm of AXA Investment Managers which was one of the world’s leading asset managers, backed by the AXA Group. It is highly essential to procure certain regulatory approvals for the closure of these transactions.
