Singapore fund manager to acquire VAM Vietnam Fund Management for $4.9m

07-Dec-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

UOB Asset Management, a wholly owned subsidiary of Singapore-based United Overseas Bank, will acquire VAM Vietnam Fund Management JSC for a cash consideration of VND113.68 billion (US$4.9 million).

UOB Asset Management has entered into an agreement with Nguyen Xuan Minh, co-founder and chair of the HCM City-based firm, for the initial acquisition of 1.13 million ordinary shares of VAM Vietnam Fund, representing some 24.53 percent of the issued share capital, reported the Business Times of Singapore.

The completion of the initial acquisition is conditional on regulatory approvals being obtained in Vietnam and Singapore.

On receipt of regulatory approvals, UOB Asset Management will acquire a further 3.47 million ordinary shares in the issued share capital of VAM Vietnam Fund, representing some 75.47 percent of the issued share capital, from the remaining shareholders at completion.

After the acquisition is completed, VAM Vietnam Fund will become a subsidiary of UOB Asset Management.

The cash consideration of VND113.68 billion will be satisfied in cash on completion using UOB Asset Management’s internal resources.

“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 the management of VAM Vietnam,” UOB noted in a statement.

As of late October this year, its net asset value was roughly VND26 billion and it had assets under management of some VND114 billion.

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.

UOB explained that the acquisition will further strengthen UOB Asset Management’s Asian franchise and presence, and is in line with its regionalisation plans.

Founded in 2016, VAM Vietnam primarily engages in public equities. It also makes investments in convertible debt and other equity-linked instruments.

Meanwhile, UOB Asset Management 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.$49m.html


Category: Stocks, Vietnam

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