Heard on the street: Sundaram Mutual scouting for foreign partner

http://www.moneyspidery.com/2012/02/09/heard-on-the-street-sundaram-mutual-scouting-for-foreign-partner/

The fund industry is abuzz with talks that Chennai-based Sundaram Mutual Fund is looking for a foreign partner to grow its asset management business. The fund house has appointed Ernst & Young to scout for a potential foreign buyer, sources close to both the companies said.

Sundaram Mutual is planning to sell a minority stake in the asset management business and it expects the foreign partner to bring in overseas funds for asset management and advisory business. Sundaram is expecting a valuation of up to 4% of its total AUM.

As on December 31, Sundaram Mutual Fund managed assets worth 14,775 crore. Senior officials at both Sundaram Mutual Fund and Ernst & Young denied any such development. “Sundaram Mutual has no such agenda nor has Sundaram Mutual talked to anyone in this regard and disapproves the authenticity of your news,” said a Sundaram spokesperson.

Ernst & Young has said that it has not been appointed by Sundaram Mutual for the deal and it is not aware of such a transaction.