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BlackRock, Reliance Nippon top bids for IDFC AMC; Emaar may sell non-core assets

09 May, 2018

Global asset manager BlackRock Inc. and Reliance Nippon Life Asset Management Ltd have emerged as the top bidders for IDFC Asset Management Co. Ltd in the first round, a financial daily reported.

The Mint report said that the potential buyers are likely to offer Rs 2,000-2,500 crore, while the company’s promoter, IDFC Financial, is seeking a valuation of Rs 4,000 crore.

The lower valuation offered by the bidders could be due to the company’s declining profits and its failure to retain top executives, the report added.

On Monday, BlackRock had agreed to sell a 40% stake in joint venture DSP BlackRock Investment Managers Pvt. Ltd to partner DSP Group. DSP BlackRock Investment Managers is the asset management company behind DSP BlackRock Mutual Fund.

In March 2017, IDFC Financial Holding Company Ltd, a subsidiary of IDFC Ltd, had agreed to buy back a 25% stake in IDFC AMC from Paris-based Natixis Global Asset Management for Rs 244.24 crore.

Established in 2000, IDFC AMC is among the top 15 mutual fund firms in India.

Emaar Properties
Dubai-based developer Emaar Properties PJSC is looking to sell its non-core assets in India to shift its focus on luxury residential development in big cities, Mint reported.

Emaar had initiated the process of selling its 90-room Fortune Select hotel in Jaipur and is looking to sell 10-15 land parcels in the outskirts of Mumbai, Delhi and Chennai, the report said, adding that real estate consultancy firm CBRE is advising the company on the transaction

Emaar had entered India in 2005 through a joint-venture with MGF Developments. In April 2016, it decided to end the partnership.

In January, the National Company Law Tribunal had approved the proposed demerger scheme of Emaar MGF Land. The company is famous for developing the world’s tallest building, the Burj Khalifa, in Dubai.

Star Health
The stake sale process of Star Health and Allied Insurance Co. Ltd may get delayed following ETA Group’s decision to move the Madras High Court seeking beneficial rights in the company, The Economic Times reported.

ETA Ascon Group, a Middle East-based business conglomerate with interests in engineering, shipping, real estate and financial services, is a shareholder in Star Health and Allied Insurance.

The company’s other investors include ICICI Venture, Tata Capital Growth Fund, Sequoia Capital, Oman Insurance Company and Apis Partners.

In April, ET had reported that PE firm WestBridge Capital, ICICI Lombard General Insurance and PremjiInvest, the family office of Wipro chairman Azim Premji, had shown interest in acquiring the company.

Last November, Star Health Investments Pvt. Ltd, the promoter of the health insurance company, had shortlisted 8-10 bids from financial as well as strategic investors to sell the business. It had started the process in early 2017.

Star Health, which started operations in 2006, offers health insurance, overseas mediclaim policies and personal accident cover. The company’s gross direct written premium was Rs 2,488.17 crore for the nine months ended December 2017.

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BlackRock, Reliance Nippon top bids for IDFC AMC; Emaar may sell non-core assets

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