Pioneer Global Asset Management, part of Italian banking group Unicredito, will pick up a 51% stake in BoB Asset Management Limited, a subsidiary of Bank of Baroda. Pioneer is re-entering the Indian mutual fund business after exiting in the early part of 2000’s. It was earlier present in India through the Kothari-Pioneer Mutual Fund.
Unicredito acquired the Pioneer Group in 2000 but due to differences with the local JV partner decided to exit the Indian markets.
BoB has signed a memorandum of understanding with Pioneer. Pioneer will acquire stake at premium and control the operations of the AMC as they will provide domain expertise. BoB will bring in local expertise and access to its wide distribution network of over 2700 branches and 29 mn customers. The Unicredito group will also explore the possibility to establishing investment banking and private equity presence in India.
Read more in the Business Standard article.
Dealcurry: Capital Markets, Investment Banking, Private Equity 