MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
In an announcement, the US investment bank said that Kotak Mahindra Bank will pay Rs1.2 billion ($27.1 million) for its 25% stake in Kotak Securities and Rs2.1 billion ($47.5 million) for its 25% stake in Kotak Mahindra Capital Company.
Kotak Mahindra's shares rose 6.4% yesterday, suggesting the market welcomed the removal of uncertainty about the state of the JV.
Goldman will now set up a wholly-owned Indian investment banking and securities firm once it has received all the requisite permissions and licenses. The new operation will also include principal investing, asset management and real estate.
Brooks Entwistle, Goldman's new India CEO says that, ôIn the first couple of years weÆd like to put $1 billion to work."
And he adds, "The Indian market represents tremendous growth and opportunity. Now, more than ever, there is a compelling case for us to build an onshore presence which is fully integrated with our global businesses."
Ahead of the formal split, Goldman and Kotak have entered into a business cooperation agreement for a period of up to one year. This is intended to ensure that existing mandates and clients are appropriately handled, as well as provide the necessary time for Goldman to get all necessary permissions.
As per Indian laws, an erstwhile domestic joint venture partner has the power to block the entry of the foreign player. For example, plans by the worldÆs largest cement manufacturer, Holcim to enter India have been thwarted many times by a minority stake it holds in an Indian entity. However, Goldman has announced that Kotak will provide all necessary consents for it to go it alone.
Goldman's move follows a similar step by Merrill Lynch last year. The latter paid its joint venture partner Hemendra Kothari $500mn (and relinquished controlling interest in DSP Mutual Fund to Kothari) to acquire control of its Indian investment banking joint venture, DSP Merrill Lynch.
Morgan Stanley now remains the last of the troika to continue operating in a joint venture with the JM Financial group, though rumours suggest that founder Nimesh Kampani is willing to strike a deal.
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
Investors are seeing the risks, but also the opportunities of the logistics sector. Warehousing their fears for the moment, they can see it's a good conduit to high-growth assets.
Insto roundup: GPIF staff say J-Reits more attractive than traditional assets; Hong Kong's strict Spac criteria
EISS Super hit by another scandal; China's CSRC launches consultation on disclosure requirements for new BSE securities; Hong Kong issues consultation paper on Spacs; New World Development partners with China Taiping to focus on Greater Bay Area projects; GPIF employees say Japanese Reits have grown more attractive; Taiwan's BLF invites bid for $1.7 billion mandate; and more
SGX’s new framework for Spacs will likely provide investors with a much-needed channel for direct deals, but the verdict is still out on whether it will bring liquidity to the bourse.