New Delhi: Yes Bank on Friday said it will exit mutual fund business by selling its holdings in asset management and trustee subsidiaries.
The bank on August 21, 2020 executed a definitive agreement for the sale of 100 per cent of the equity shareholding of Yes Asset Management (India) Ltd (YESAMC) and Yes Trustee Ltd (YTL), both wholly-owned subsidiaries of Yes Bank to GPL Finance and Investments Ltd (purchaser), it said in a regulatory filing.
"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.
