Religare Enterprises Ltd., the Indian financial services company owned by billionaire Malvinder Singh, said it may invest as much as $1 billion buying stakes in asset management companies worldwide.
Religare agreed to buy a majority stake in Northgate Capital LLC, a private equity and venture capital firm that manages about $3 billion in assets and has offices in San Francisco and London, the New Delhi-based company said in a statement distributed by PRNewswire.
Religare, controlled by the former owners of Ranbaxy Laboratories Ltd., set up its own mutual fund business in 2008 and bought Hichens, Harrison & Co., London’s oldest firm of stockbrokers, in the same year. The money manager has said it plans to open 100 branches in the first three years of operation.
Religare shares rose as much as 6.1 percent, the most in intraday trading in more than five weeks, to 390 rupees in Mumbai. The stock traded at 376.25 rupees as of 9:28 a.m. local time.
Jefferies & Co. and Religare Capital Markets Ltd. were the financial advisers to Religare Enterprises. Credit Suisse Securities (USA) LLC was the adviser to Northgate, according to the statement.
Source: Business Week