LIC Housing Finance announced that it is set to buy 19.3% stake from its partner Nomura for Rs. 27 crore. The deal was cleared by the board of LIC Housing Finance yesterday.
LIC AMC is jointly owned by LIC Housing Finance (20%), LIC of India (45%) and Nomura Asset Management (35%).
According to media reports, the Japanese asset manager had picked up 35% stake in LIC AMC in 2009 for Rs. 308 crore, valuing the AMC at little less than 2.5% of Rs. 32,412 crore AUM as on June 2009. Going by the deal value, Nomura is exiting at a loss.
From the time Nomura bought a stake in LIC AMC in 2009, LIC Nomura AMCs assets have slid to Rs. 11,157 crore as on September 2015.
According to reports, this is the first step towards Nomura exiting the joint venture fully.
