Pramerica to acquire DHFL’s stake in asset management joint venture
Pramerica Financial and Dewan Housing Finance Corporation Ltd. (DHFL) signed a binding term sheet for Pramerica to acquire DHFL’s stake in their 50:50 joint venture asset management company, DHFL Pramerica Asset Managers Pvt. Ltd. (DPAM).
The transaction is subject to signing of definitive documentation, customary closing conditions, and regulatory and other approvals.
The transaction would make DPAM a wholly-owned business of PGIM, the global asset management business of PFI, which ranks among the top 10 largest investment managers in the world with more than $1 trillion in assets under management.
“We see tremendous opportunity in the asset management market in India and are very excited to be entering this next phase of growth,” said Glen Baptist, CEO of PGIM Global Partners. “Our expanded investment demonstrates our deep commitment to this market and confidence in both our talented leadership team and robust investment process.
We strongly believe that when combined with the deep expertise and broad capabilities of PGIM, we are well positioned to serve our clients and to strengthen our competitive position in India.”
Pramerica and DHFL formed the joint venture in 2014 and immediately expanded its business through the acquisition of Deutsche Asset Management (India) Pvt. Ltd. The transaction will not change DPAM’s scope of business.
“This is a strategic call by DHFL to focus more on our core business. We firmly believe that this move is in the best interest of all parties and will have a positive outcome for all stakeholders.” added KapilWadhawan, chairman and managing director, DHFL.