UOB Asset Management (UOBAM) has agreed to acquire an initial stake in VAM Vietnam Fund Management (VAM VN), which makes it the second such purchase in Southeast Asia in the space of a few months.
UOBAM is the wholly-owned subsidiary of Singapore’s United Overseas Bank (UOB) and has S$35.1bn (€23.31bn) of assets under management.
The deal size is S$6.7m and is to be paid in cash.
“The acquisition will further strengthen UOBAM’s Asian franchise and presence, and is in line with UOBAM’s regionalisation plans,” UOB said in a statement.
UOBAM will initially acquire a 24.53% stake from VAM VN co-founder and chairman Nguyen Xuan Minh.
Once the deal has received regulatory approvals in Vietnam and Singapore, UOBAM is expected to acquire the balance of the issued share capital from the remaining shareholders of VAM VN.
As at 31 October 2019, the net asset value of VAM VN was approximately S$1.5m while its assets under management were approximately S$6.7m, according to UOB.
UOB said it did not expect the acquisition to have a material impact on the earnings or the net tangible assets of UOBAM or the UOB Group for the current financial year.
In September, UOBAM acquired Jakarta-headquartered PT PG Asset Management.