Bharti Enterprises, on Saturday exited the asset management business, with its decision to sell 51 per cent holding in Bharti AXA Investment Managers (BAIM) to the public sector bank, Bank of India.
“Bank of India and AXA Investment Managers Asia Holdings Private Limited have agreed to enter into a joint venture in asset management business carried on by Bharti AXA Investment Managers,” said the two companies in a joint statement. “In the proposed joint venture, BOI will acquire 51 per cent equity and the balance will remain with AXA Group.”
Ernst and Young acted as advisor to the deal.
The asset management joint venture had little success in terms of the assets under management (AUM) as Bharti AXA Mutual fund had only Rs 176 crore as average AUM in the quarter ended September 2011.
Bharti has also been on the lookout for a buyer for its 74 per cent holding in the life insurance and general insurance joint venture with AXA Life and AXA General insurance companies. In June 2011, Bharti entered into talks with Reliance Industries (RIL) and Reliance Industrial Infrastructure Limited (RIIL) to sell its holding in the two insurance joint ventures.
However, on November 25, RIL and RIIL called off their negotiations to acquire Bharti’s shareholding of 74 per cent in Bharti AXA Life Insurance and Bharti AXA General Insurance.
In a statement, RIL said that the negotiations for acquisition are being jointly terminated,” as a result of the parties being unable to reach agreement on the long term vision and joint governance of the ventures”.