Standard Chartered is planning to acquire remaining 25.1% stake in erstwhile UTI Securities, reported The Economic Times.
The UK-based Standard Chartered, which already holds 74.9% stake in erstwhile UTI Securities, plans to end the transaction by the third quarter of 2010, according to the report.
In August 2007, Standard Chartered entered into a strategic partnership with Securities Trading Corporation of India (STCI) to acquire a 49% stake in UTI Securities Limited (UTISEL), for approximately $36m cash.
Under the agreement, STCI and Standard Chartered have provided for necessary options to raise Standard Chartered’s stake in stages to 100% by 2010, subject to necessary regulatory approvals.
In 2008, Standard Chartered changed the name of UTI Securities to Standard Chartered – STCI Capital Markets.
In December 2008, Standard Chartered acquired another 25.9% stake in erstwhile UTI Securities to increase its total stake from 49% to 74.9%.
The latest stake acquisition will give Standard Chartered total control over the erstwhile UTI Securities.