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.
Upon completion of the initial acquisition, which is subject to regulatory approvals in Vietnam and Singapore, UOBAM will acquire a further 3.47 million ordinary shares of VAM Vietnam, or approximately 75.5 per cent of the issued share capital of the firm, which will turn VAM Vietnam into a subsidiary of UOBAM.
The cash consideration for the transaction is S$6.7 million ($4.9 million).
“The consideration was arrived at on a willing-buyer-willing-seller basis and took into account various factors including the capital, net asset value and assets under management of VAM Vietnam,” UOB said in a statement.
VAM Vietnam had a net asset value of S$1.53 million, and assets under management of S$6.72 million as of 31 October 2019.
“The acquisition will further strengthen UOBAM’s Asian franchise and presence, and is in line with UOBAM’s regionalisation plans,” the Singapore firm added.
UOBAM managed 54 unit trusts in Singapore and about S$35 billion in clients’ assets as of 30 September 2019.
The firm earlier announced the acquisition of a 75 per cent stake in Indonesia-based PT PG Asset Management in September. In June, it launched the United Global Innovation Fund to enable retail investors to invest in innovative enterprises of different market capitalisation across sectors and regions.