Singapore-based lender UOB, through its subsidiary UOB Asset Management (UOBAM), has acquired a 75 per cent stake in Indonesia’s PG Asset Management (PGAM) for S$2.25 million ($1.63 million), according to an official release.
UOBAM purchased the stake from local firm Multikem Suplindo.
Jakarta-based PG Asset Management holds an investment management license dated 27 December 2011 issued by Otoritas Jasa Keuangan (OJK), the financial services authority in Indonesia.
The company has a net asset value of approximately Rp 7.7 billion, as at 28 September 2018, with assets under management of approximately Rp 255.4 billion.
After completion of the acquisition, which awaits regulatory approvals from Indonesia and Singapore, PGAM will become a subsidiary of UOBAM.
The addition of PGAM, UOBAM said, would further strengthen the company’s Asian franchise and presence, and is in line with the UOB Group’s regionalisation plans.
UOB recently invested in Israel-based fintech startup Personetics to enhance its artificial intelligence-based solutions for customers across Southeast Asia using the latter’s cognitive analytic capabilities.
Earlier this month, it emerged that UOB had also made an unspecified investment into Southeast Asian ride-hailing giant Grab as part of a strategic financial services alliance.
Furthermore, UOB Alternative Investment Management (UOBAIM) is said to be weighing a Southeast Asia-focused fund-of-funds with a target corpus of $200-300 million, which will focus on areas such as technology, healthcare and consumer-related services.