Wednesday, April 11, 2007

Rajan Raheja-promoted Hathway Investments buys 39% in ING Vysya Mutual Fund

The Economic Times reports that Hathway Investments, a company promoted by realtor Rajan Raheja, has bought out ING Vysya Bank’s entire 39% stake in ING Vysya Mutual Fund for an undisclosed sum. Post this deal, ING will hold 42.5% in the fund, Hathway 39%, and existing Indian shareholder Kirti Equities, will retain 18.5%. The fund would be renamed as ING Mutual Fund. The asset management company’s total assets under management as on March 31, 2007, were close to Rs. 3630 crores. For the year ended March 2006, the AMC had reported a net loss of Rs. 21 crores. This could have depressed the valuation of the fund house, which usually ranges from 4-6% of assets. Hathway, which earlier held a 25% stake in Franklin Templeton, is estimated to have pocketed around Rs. 300 crores from the sale of its stake, less than six months ago.

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