JM Financial inks Joint Venture with ASK Securities

JM Financial Ltd has announced that the Board of Directors of the Company at its meeting held on July 04, 2007 has approved, 'in principle’, the proposal to enter into a joint venture with ASK Group for acquiring 60% equity stake either by the Company itself or through any of its subsidiaries in ASK Securities Pvt Ltd for an aggregate consideration of Rs 58.14 crore. The joint venture will focus on the Equity Research and Institutional Sales & Trading Businesses.

The press release in this regard are as follows:

JM Financial Ltd on July 04, 2007 has announced that it has entered into a joint venture with leading broking firm, ASK Securities Pvt Ltd by agreeing to acquire a 60% stake in the Company. The joint venture will focus on Equity Research and Institutional Sales & Trading.

The transaction is expected to close by second quarter of the Financial Year 2007-08, subject to necessary regulatory approvals.

Commenting on the joint venture, Mr. Nimesh Kampani, Chairman, JM Financial Group said, "We are very happy to partner with ASK Securities in this joint venture. With our strong investment banking franchise and our deep-rooted institutional relations, this joint venture will now complete the bouquet of financial services we offer. This joint venture in yet another step towards our long-term growth strategy of building a financial institution with global reach."

Source : Equity Bulls

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