Union Bank of India has announced that Japan-based financial major Dai-ichi Life has bought 39.62% in Union AMC.
A press release issued by the bank said, “Union Bank of India is pleased to announce the investment by Dai-ichi Life Holdings, Inc. (“Dai-ichi Life”) in Union Asset Management Company Pvt. Ltd (“Union AMC”). As part of this new partnership, Dai-ichi Life Holdings Inc holds 39.62% of the share capital of Union AMC through investment in Compulsorily Convertible Preference Shares. Consequently, Union Mutual Fund would now be co-sponsored by Union Bank of India and Dai-ichi Life.”
With this investment, Dai-ichi Life forays into Indian AMC business. Earlier, Dai-ichi Life had partnered with Union Bank and Bank of India to set up an insurance business.
Listed on Tokyo Stock Exchange, Dai-ichi Life is a financial services company engaged in insurance and AMC business. Currently, it has stakes in two AMCs – Asset Management One and Janus Henderson Group.
Union Bank is a nationalized bank operating in India for more than 99 years. As of Mar 2018, total business stands at Rs.7.22 lakh crore and it operates through 4,301 branches and 7,642 ATMS.
Union AMC is operating in India since 2011. Currently, the company manages average AUM of over Rs.4,000 crore as on April 2018.
With this investment Dai-ichi Life would appoint one nominee director on the board of Union AMC.
There will be no change in the key personnel or the existing fund management team. Also, there will be no change in the name of Union AMC, Union Mutual Fund or of the schemes of Union Mutual Fund.
