360 One To Issue Warrants Worth Rs 2,112 Crore To UBS As Part Of Wealth Management Tie Up
UBS will purchase warrants to acquire a 4.95% stake in 360 ONE as a part of the deal.
360 ONE WAM Ltd. has approved a strategic pact with Switzerland-based UBS AG to offer onshore and offshore wealth management solutions.
"It is proposed that clients from both institutions will have access to onshore and offshore wealth management solutions," the company said in an exchange filing on Tuesday. "Potential collaborative opportunities for asset management products and investment banking services will also be explored."
360 ONE will also acquire UBS’ onshore wealth management business in India through its subsidiaries for Rs 307 crore. This includes a slump sale where the former will take over the latter's broking services and distribution business, and discretionary and non-discretionary portfolio management services business. 360 ONE will also be acquiring the residual loan portfolio of wealth management clients of UBS' India wealth business.
As part of the deal, UBS will purchase 2.05 crore warrants, which will be worth a 4.95% stake in 360 ONE upon conversion. The warrants, which are convertible within 18 months, will be issued at 14% premium to the three-day volume weighted average price of the scrip, at Rs 1,030 apiece. This makes the total purchase worth Rs 2,112 crore.
360 ONE Chairman Akhil Gupta said that the deal "strengthens our position as a market leader in India and UBS’ offering as the wealth manager of choice for global Indians".
Headquartered in Mumbai, 360 ONE offers investment and financial advisors to over 7,500 families in the ultra-high-net-worth individual and high-net-worth individual segments. The company has aggregate assets of more than Rs 5.79 lakh crore under management.
The active AUM of UBS' India wealth business, that 360 ONE is set to acquire, stood at around Rs 26,000 crore as on Dec. 31, 2024.
The UBS deal comes days after veteran banker Vikram Malhotra resigned from the firm, along with 10 other private bankers who were a part of his 360 One Global team.
In a separate filing, 360 ONE also said that Batlivala & Karani Securities India Pvt. has received approval from the Securities and Exchange Board of India to be acquired by the company.
