Yes Bank has said it will exit mutual fund business by selling its holdings in asset management and trustee subsidiaries.
"White Oak Investment Management Private Limited owns 99 per cent of the purchaser. The ultimate beneficial holder of the purchaser is Prashant Khemka who owns 99. 99 per cent of White Oak Investment Management Private Limited," Yes Bank said.
The transaction is subject to requisite approvals from the regulatory authorities, the private sector lender said. YESAMC is the asset management company of Yes Mutual Fund and YTL is the trustee of Yes Mutual Fund.
"Upon completion of the transaction, YESAMC and YTL will cease to be subsidiaries of the bank and the bank will exit its mutual fund business," Yes Bank said.
The lender said it is expected to complete the sale of the subsidiaries in 8-12 months from execution of the definitive agreement. The consideration to be received from the sale is undisclosed as it is to be determined on closing of the transaction, it added.
"The bank, presently, does not have any promoters," it added.
Revenue contribution of YESAMC in FY20 was Rs 33 lakh (Rs 3.3 million) which is negligible as percentage. The net worth contribution of AMC arm during the year was Rs 49. 7 crore (Rs 497 million) which is also negligible as percentage of the bank, the lender said.
Revenue and net worth contribution from YTL is nil, Yes Bank said.
GPL Finance and Investments Limited is NBFC (non-banking financial company) investment vehicle used for 100 per cent acquisition of YESAMC and YTL, it added further.
Shares of Yes Bank closed at Rs 15.57 apiece on BSE, down 1.21 per cent from the previous close.
