(Repeats story issued late on Friday)
* Schroders buys 25 pct stake of Indian firm
* Axis AMX has assets under mgt of $2.3 bln
* Aims to build Indian asset management arm
By Anjuli Davies
LONDON, April 27 (Reuters) - Funds firm Schroders Plc
is buying a 25 percent stake in India's Axis Asset
Management Co, aiming to tap into growing business opportunities
in Asia's third-largest economy and meet demand for financial
products from its burgeoning middle class.
Axis AMC, founded in 2009 by Axis Bank, is ranked 15th in
India's 44-player asset management business with around $2.3
billion of assets under management. The purchase price has been
kept confidential, a spokesman for Schroders said.
Lured by the long-term prospects seen in India, overseas
fund managers such as U.S.-based T. Rowe Price Group Inc
have been buying into Indian money managers.
Nippon Life Insurance in January agreed to pay
$290 million for a 26 percent stake in the asset management unit
of India's Reliance Capital Ltd, joining other foreign
fund managers seeking to tap into the country's growing middle
Assets under management by Indian fund managers rose to 5.9
trillion rupees as of March 2011 from 2.3 trillion in March
2006, according to a study by PricewaterhouseCoopers.
"We are delighted to enter a long-term partnership with Axis
Bank with the objective of building a leading Indian asset
management business," Michael Dobson, chief executive of
Schroders, said in a statement.
"This enables us to participate in the growth opportunity
represented by the Indian mutual fund market through a strategic
relationship with a leading private sector bank."
The transaction is subject to regulatory approval and is
expected to complete during 2012.
Not known for frequent corporate acquisition activity,
Schroders, which manages assets worth around 180 billion pounds
($291.4 billion), tends to enter new markets through joint
ventures. In 2006, the 200-year old British fund firm bought a
30 percent stake in a fund management company run by China's
Bank of Communications.
Schroders shares were trading around 2 percent higher at
1330 GMT at 1,448 pence, while the blue chip FTSE index
was up half a percent.
($1 = 0.6178 British pounds)
(Additional reporting by Swati Pandey in Mumbai; Editing by