Three sponsors of UTI Asset Management Co. said Monday they have agreed to sell part of their stakes in the fund house and UTI Trustee Co. to U.S.-based investment manager T. Rowe Price Global Investment Services Ltd.

State Bank of India (500112.BY), Punjab National Bank (532461.BY) and Bank of Baroda (532134.BY)--which together own 75% of UTI AMC and UTI Trustee Co.--would sell 6.5% each, they said in separate filings with the stock exchanges.

UTI Asset Management is India's fourth-largest fund house with average assets under management of INR768.47 billion at the end of October, according to industry body Association of Mutual Funds in India.

Punjab National Bank said it will tender 8.125 million shares of UTI AMC at INR200 each, or a total of INR1.625 billion, and 6,500 shares of UTI Trustee at INR11.92 per share for an aggregate of about INR77,500.

The deal is subject to requisite statutory and regulatory approvals, State Bank of India, the nation's top lender by assets, said without disclosing any financial details.

State-run Life Insurance Corp. of India, which owns the remaining 25% as the fourth sponsor, couldn't be immediately contacted for comment, while a UTI executive didn't respond to calls.

R.K. Bakshi, an executive director at Bank of Baroda, told Dow Jones Newswires Friday all the four sponsors had agreed to join the stake sale.

-By Shikhar Balwani and Gurdev Singh Virk, Dow Jones Newswires; 91 22 6145 6119; Gurdev.Singh@dowjones.com
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