Dewan Housing Finance Corporation
(DHFL) said on Tuesday that it will sell its entire stake in mutual fund business, DHFL Pramerica Asset Managers, to its joint venture partner Prudential Finance.
DHFL holds 50% stake in the mutual fund business—17.12% directly and 32.88% through subsidiary DHFL Advisory and Investments Pvt. Ltd, according to the BSE filing.
The financial services company has entered into sale agreements with PGLH of Delaware Inc. an entity owned by Prudential Financial.
“The company and the acquirer have entered into a binding term sheet on December 18, 2018. The proposed transaction is subject to definitive documentation, applicable regulatory and other approvals and certain other conditions,” the company said in the filing.
Shares of Dewan Housing Finance Corporation Ltd ended at Rs213.90 down by Rs4 or 1.84% from its previous closing of Rs217.90 on the BSE.
The scrip opened at Rs217.30 and touched a high and low of Rs218.70 and Rs213.20 respectively.