Hathway buys 39% in ING Vysya MF

Hathway Investments, a company owned by the Rajan Raheja group, has bought out ING Vysya Bank’s entire 39% stake in ING Vysya Mutual Fund for an undisclosed sum.

Following the deal, ING will hold 42.5% in the fund, to be renamed ING Mutual Fund, Hathway 39%, and existing Indian shareholder—Kirti Equities—will retain 18.5%. The asset management company’s (AMC) total assets under management as on March 31, ‘07, were close to Rs 3,630 crore.

For the year ended March ‘06, the AMC had reported a net loss of Rs 21 crore. This could have depressed the valuation of the fund house, which usually ranges from 4-6% of assets. Hathway, which earlier held a 25% stake in Franklin Templeton, is estimated to have pocketed around Rs 300 crore from the sale of its stake.

Read more in The Times of India article.