IL&FS Investment Managers Ltd has announced that the Board of Directors of the Company at its meeting held on July 30, 2010, has granted its approval to the Company to acquire the shares of Saffron Assets Advisors Pvt. Ltd. (“SAAPL”) an, Indian entity, from Saffron Capital Securities Ltd. (“SCSL”), a Mauritius entity, thus making it a subsidiary of the Company.
Further the Board has granted its approval to merge SCSL and its wholly owned subsidiary Saffron Capital Advisors Ltd. (“SCAL”), a Mauritius entity, into IL&FS Investment Advisors LLC (“IIAL”), the Company's wholly owned subsidiary in Mauritius. This merger would not in any manner dilute the Company's beneficial interest in IIAL.
As a result of the foregoing, IIML through its subsidiary IIAL will become the Advisor to two India focused real estate funds including Yatra Capital Ltd. which is listed on the Euronext Stock Exchange. This will result in an increase in the assets under management (AUM) by USD 400 mn thus aggregating to a total AUM of USD 3.2 bn and there will be no dilution to the existing equity of IIML.
The aforesaid actions are subject to receipt of all corporate, governmental and regulatory consents, approvals and permissions, if any, as may be required at any levels under applicable laws, to implement the above decisions.
Source: Equity Bulls