Business Daily from THE HINDU group of publications
Friday, Mar 23, 2007
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Business Daily from THE HINDU group of publications Friday, Mar 23, 2007 ePaper |
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Markets
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Financial Services Corporate - Mergers & Acquisitions Our Bureau
Similar deals They came together in 1994 with 50:50 joint venture Earlier, Morgan Stanley, JM Financial also parted ways Goldman Sachs ended its 10-year relationship with Kotak Merrill Lynch spent $500 m to take control of DSP Merrill
Mumbai March 22 The ASK Group on Thursday said it had entered into a share purchase agreement with Raymond James Financial Inc, US, to buy out Raymond James' 50 per cent interest in ASK Raymond James. The deal amount was, however, not disclosed. ASK Raymond James is a 50:50 joint venture formed in 1994 between Raymond James Financial of the US and the Mumbai-based ASK Investment and Financial Consultants. Subsequent to the buyback, the shareholding of the company will fully vest with the ASK Group. "Raymond James was a passive partner in the joint venture. Therefore, we proposed to buy them out," said Mr Asit Koticha, Managing Director, ASK Raymond James. The businesses of the holding company will continue to be institutional broking, portfolio management services, investment banking and financial planning. Each of the businesses will be carried out though separate operating subsidies. The portfolio management services business of the ASK Group will be renamed ASK Investment Managers Private Ltd from ASK Raymond James Securities India Pvt Ltd; the institutional equity broking business arm will be called ASK Securities India Pvt Ltd instead of ASK Raymond James & Associates Pvt Ltd, while the financial planning business will known as ASK Wealth Advisors Pvt Ltd. Mr Mukkaram Bhagat, Director-Broking of Ask Raymond James, said they would now be looking at marketing alliances with overseas partners in order to get global distribution of their broking products. Raymond James joins Goldman Sachs Group, Morgan Stanley and Merrill Lynch in separating from their Indian partners. Morgan Stanley and JM Financial in February this year announced that they would be ending their seven-year partnership in the investment banking and securities businesses. As per the agreement, J M Financial is to sell its 49 per cent holding in institutional equity broking company J M Morgan Stanley Securities Pvt Ltd to Morgan Stanley for $445 million (Rs 1,970 crore), while Morgan Stanley would sell its 49 per cent holding in J M Morgan Stanley Pvt Ltd to J M Financial for $20 million (Rs 88.5 crore). Similarly, Goldman Sachs last year severed its 10-year relationship with Indian partner, the Kotak Mahindra group, by selling 25 per cent stake each in Kotak Mahindra Capital Company Ltd (for Rs 210 crore) and Kotak Mahindra Securities Ltd (Rs 123 crore). Merrill Lynch & Co spent $500 million in December 2005 to buy control of DSP Merrill Lynch Ltd.
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