Singapore fund management company UOB Asset Management (UOBAM) has agreed a deal to initially acquire 1.13 million ordinary shares from VAM Vietnam Fund Management Joint Stock Company from individual Nguyen Xuan Minh for VND113,680m ($4.9m).
The deal for the 24.53% shareholding is subject to regulatory approval in Vietnam and Singapore, Business Times has reported.
UOBAM, a wholly-owned subsidiary of United Overseas Bank, will acquire an additional 3.47 million ordinary shares from the remaining shareholders, representing 75.47% of issued share capital, after securing approval from the regulators.
The company will fund the transaction of VND113,680m on completion through internal resources.
After the deal, VAM Vietnam Fund Management Joint Stock Company will become a subsidiary of UOB Asset Management.
UOBAM has considered several factors, including capital, net asset value and asset under management of VAM, for the acquisition.
The Singapore fund management company said that the acquisition is not expected to have any material impact on its earnings or the net tangible assets for the current financial year.
The acquisition is expected to strengthen UOB Asset Management’s presence in Asia, in line with its regionalisation plans.
As of 31 October 2019, VAM had a net asset value of around VND26bn ($1.1m) and assets under management of approximately VND114bn ($4.9m).
UOBAM offers investment management expertise to institutions, corporations and individuals through customised portfolio management services and unit trusts.
The company, which manages 54 unit trusts in Singapore, is among the largest unit trust managers in Singapore in terms of assets under management.
VAM Vietnam Fund Management Joint Stock Company is primarily involved in asset management services in the form of investment funds and separately managed accounts.
In September this year, UOB Asset Management completed the acquisition of a 75% stake in PT PG Asset Management (PGAM) of Indonesia.
PGAM, based in Jakarta with a branch in Surabaya, specializes in mutual funds across equity, debt and money market securities and offers products and services to retail and institutional investors.
The acquisition of PGAM is expected to enable UOB Asset Management to offer investment expertise to local investors across various asset classes, and in areas such as Islamic investments, smart beta1 and multi-asset strategies.
The acquisition of PGAM has helped UOB Asset Management to expand its regional network to Indonesia, mainland China, Brunei, Japan, Singapore, Malaysia, Taiwan and Thailand.