Dutch firm to buy 49% in CanBank MF

Dutch asset manager Robeco Groep NV, a part of European banking giant Rabobank Groep, will buy 49 per cent stake in Canara Bank's asset management arm to gain a foothold in the country's robust mutual fund industry.

Robeco, which has assets under management of 139 billion euros worldwide and posted operating profits of 233 million euros in 2005, will pay Rs 115 crore to Canara Bank for its stake in Canbank Investment Management Services Ltd (CIMS).

"The total valuation of our asset management entity is Rs 230 crore and 49 per cent stake sale will bring about Rs 115 crore," Canara Bank Chairman and Managing Director M B N Rao told reporters after signing an MoU with Robeco.

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