BlackRock will end its joint venture with DSP Group in the mutual fund, asset management and alternate investment fund businesses, and sell its 40% minority stake to the founders of DSP and its group entities.
DSP BlackRock managed assets worth ₹1.1 trillion (US$16.5 billion) as of 30 April and its products had two million investors. “After nearly a decade of partnership, it is time for the DSP Group and BlackRock to take different paths,” said Ryan Stork, the chairman of BlackRock Asia-Pacific. “BlackRock is committed to the India market for the long term.”
“Trilegal was a strategic adviser to BlackRock during the entire period of commercial discussions,” partner Yogesh Singh told Asia Business Law Journal. “Post term-sheet, Trilegal worked with a Skadden Arps team in negotiating and finalizing the transaction documents. [Our] tax team was also involved in advising Blackrock … the antitrust team analysed the merger control approval requirements for the deal.”
Singh was supported by counsel Nitika Chhabra, senior associate Ramya Suresh and associate Eklavya Malvai. Partner Samsudhha Majumdar and senior associate Ayush Tandon advised on the tax aspects, and partner Nisha Kaur Oberoi and senior associate Gautam Chawla advised on the antitrust related aspects.
DSP Group was advised by Talwar Thakore & Associates. Partner Kunal Thakore was supported by managing associate Neville Golwalla and associate Gayatri Chadha. Skadden Arps Slate Meagher & Flom assisted BlackRock, while King & Spalding advised DSP Group.
The sale still requires approvals from the Securities and Exchange Board of India and the Competition Commission of India, and is expected to be completed in the July-September quarter.