NEW DELHI, Dec 23 (Reuters) - India's L&T Finance Holdings
Ltd said on Thursday it is selling its mutual fund operations to
HSBC Asset Management Private Ltd for $425 million in order to
assist its lending business.
HSBC intends to merge L&T Investment Management
Limited with its existing $1.6 billion asset management business
in India, L&T said in a statement.
Dinanath Dubhashi, managing director and CEO of L&T Finance
Holdings, said the HSBC deal was in line with L&T's aim of
"unlocking value" from its subsidiaries, adding this would help
it to strengthen its balance sheet for its lending business.
L&T Investment Management Limited has asset under management
of over 800 billion Indian rupees ($10.65 billion) and offers a
basket of equity, fixed income and hybrid schemes to both retail
and institutional investors, L&T said.
J.P. Morgan and Citi were the financial advisers to L&T.
($1 = 75.1020 Indian rupees)
(Reporting by Aftab Ahmed; Editing by Alexander Smith)