JM:MS Splie
JM Financial Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 22, 2007, has approved in principal decision to separate from Morgan Stanley in the joint venture in Investment Banking and Securities Broking Business, subject to necessary regulatory and other approvals as may be required and signing of definitive agreements.
The joint venture inked in 1997 and formalized in 1999 established a pre-eminent Investment Bank, Equity Broking, Research, wealth management and advisory and securities distribution operations in India during the decade long relationship.
JM Financial Group, established in 1973 and a pre-eminent Indian Investment Bank by itself prior to the joint venture with Morgan Stanley, will acquire 49% holding of Morgan Stanley in JM Morgan Stanley Pvt Ltd (JMMS), the Investment Banking Company together with its subsidiaries engaged in fixed income, equity broking, wealth management, advisory and distribution businesses of the joint venture at around book value for USD 20 mn equivalent to Rs 88.5 cr at current exchange rate. JM Financial will simultaneously sell to Morgan Stanley, their 49% holding in JM Morgan Stanley Securities Pvt Ltd (JMSPL), the Institutional equity broking Company for USD 445 mn equivalent to approx Rs 1970 Cr at current exchange rate.
The transaction is expected to close by first quarter of Financial Year 2007-08. JM financial group and Morgan Stanley have agreed that all existing mandated transactions will be executed by the current joint venture and the partners in the manner currently in practice in a seamless manner keeping the clients' interest as utmost priority.
JM Financial Group has recently ramped up their asset management business with the addition of a private equity fund and a real estate fund to the existing mutual fund business. The group has also forayed into securitized assets and special situations investing activities. Besides these, the group runs a Non Banking Financial Company and a Commodities research and broking business.
Commenting on this transaction, Nimesh Kampani, Chairman of JM Financial Group said, "Rapidly growing Indian economy is opening up new vistas for growth in the Financial Services business. Time is ripe for Indian businesses of JM Financial's stature to build Indian Institution of global standards thirds and reach. JM Financial is focused on expanding their area of operations and grow all businesses in a synergistic rapid pace. The separation will allow the JM Financial group to capture these opportunities on the foundation of their Firm values of long term business focus backed by strong relationship with the clients. JM Financial group will immediately build up their own institutional equity broking and research business. The group already has the relationships and expertise for these businesses and will enhance the infrastructure needed to add these to their current portfolio."
Udwadia & Udeshi as well as Amarchand Mangaldas and Suresh A Shroff & Co. acted as legal advisors to JM Financial for this transaction. PP Shah & Co. acted as tax advisors to JM Financial for this transaction.
JM Financial is an integrated diversified financial services group offering a broad range of financial products and services including investment banking, securities, wealth management, investment management and equity financing to its Indian and international clients.
The joint venture inked in 1997 and formalized in 1999 established a pre-eminent Investment Bank, Equity Broking, Research, wealth management and advisory and securities distribution operations in India during the decade long relationship.
JM Financial Group, established in 1973 and a pre-eminent Indian Investment Bank by itself prior to the joint venture with Morgan Stanley, will acquire 49% holding of Morgan Stanley in JM Morgan Stanley Pvt Ltd (JMMS), the Investment Banking Company together with its subsidiaries engaged in fixed income, equity broking, wealth management, advisory and distribution businesses of the joint venture at around book value for USD 20 mn equivalent to Rs 88.5 cr at current exchange rate. JM Financial will simultaneously sell to Morgan Stanley, their 49% holding in JM Morgan Stanley Securities Pvt Ltd (JMSPL), the Institutional equity broking Company for USD 445 mn equivalent to approx Rs 1970 Cr at current exchange rate.
The transaction is expected to close by first quarter of Financial Year 2007-08. JM financial group and Morgan Stanley have agreed that all existing mandated transactions will be executed by the current joint venture and the partners in the manner currently in practice in a seamless manner keeping the clients' interest as utmost priority.
JM Financial Group has recently ramped up their asset management business with the addition of a private equity fund and a real estate fund to the existing mutual fund business. The group has also forayed into securitized assets and special situations investing activities. Besides these, the group runs a Non Banking Financial Company and a Commodities research and broking business.
Commenting on this transaction, Nimesh Kampani, Chairman of JM Financial Group said, "Rapidly growing Indian economy is opening up new vistas for growth in the Financial Services business. Time is ripe for Indian businesses of JM Financial's stature to build Indian Institution of global standards thirds and reach. JM Financial is focused on expanding their area of operations and grow all businesses in a synergistic rapid pace. The separation will allow the JM Financial group to capture these opportunities on the foundation of their Firm values of long term business focus backed by strong relationship with the clients. JM Financial group will immediately build up their own institutional equity broking and research business. The group already has the relationships and expertise for these businesses and will enhance the infrastructure needed to add these to their current portfolio."
Udwadia & Udeshi as well as Amarchand Mangaldas and Suresh A Shroff & Co. acted as legal advisors to JM Financial for this transaction. PP Shah & Co. acted as tax advisors to JM Financial for this transaction.
JM Financial is an integrated diversified financial services group offering a broad range of financial products and services including investment banking, securities, wealth management, investment management and equity financing to its Indian and international clients.
posted by Amit at 12:10 AM
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