Thailand bank SCB X weighs options for US$1.5b asset management unit

SCB X is considering options including a sale of its asset management unit, people familiar with the matter said, amid growing industry consolidation in South-east Asia’s second-largest economy.

SCB X, formerly known as Siam Commercial Bank, has been speaking with financial advisers to explore a potential transaction for SCB Asset Management, the people said, asking not to be identified because the matter is private. A potential deal could value the business at US$1 billion to US$1.5 billion, the people said.

Other industry players have shown preliminary interest in SCB X’s asset manager, the people said. Considerations are at an early stage and SCB X could still decide against pursuing any deal, the people said.

A representative for Bangkok-based SCB X didn’t immediately respond to requests for comment.

SCB Asset Management was set up in 1992 and manages mutual funds, provident funds and private funds, according to its website. Its net asset value under management reached about 1.6 trillion baht (S$62.3 billion) as of the end of May.

Banks in the region are seeking to raise capital by selling non-core assets, while some asset managers look for growth via mergers and acquisitions. Also in Thailand, Kasikornbank has been weighing options including a sale of its asset management unit amid interest from potential buyers including Europe’s largest fund manager Amundi, Bloomberg News has reported. BLOOMBERG