Singapore fund management company UOB Asset Management (UOBAM) intends to acquire VAM Vietnam Fund Management Joint Stock Company for $4.9m.
VAM Vietnam was established in 2006 and primarily invests in public equities. It also makes investments in convertible debt and other equity‐linked instruments. The Singapore-based fund manager said it will purchase nearly 1.3 million shares of VAM Vietnam from Nguyen Xuan Minh, co-founder and chairman of the Vietnam-based company.
The deal for the firm's 24.53% shareholding is valued at VND113,680 million ($4.9m).
After regulators approve the deal, another 3.47 million ordinary shares, or 75.47% of issued share capital, will be acquired by UOB Asset Management making VAM Vietnam Fund Management Joint Stock Company its subsidiary.
The acquisition is not expected to have a material impact on the earnings or the net tangible assets of UOB for the current financial year.
After the deal, VAM Vietnam Fund Management Joint Stock Company will become a subsidiary of UOB Asset Management. The acquisition is expected to strengthen UOB Asset Management's presence in Asia, in line with its regionalisation plans.
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.