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UOB to acquire VAM Vietnam Fund Management Joint Stock Company
UNITED Overseas Bank's wholly-owned subsidiary UOB Asset Management intends to acquire VAM Vietnam Fund Management Joint Stock Company for a cash consideration of VND113,680 million (S$6.7 million).
UOB Asset Management has entered into an agreement with individual Nguyen Xuan Minh for the initial acquisition of 1.13 million ordinary shares of VAM Vietnam Fund Management Joint Stock Company, representing approximately 24.53 per cent of the issued share capital.
The completion of the initial acquisition is conditional upon regulatory approvals being obtained in Vietnam and Singapore.
Upon 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 Management Joint Stock Company, representing about 75.47 per cent of the issued share capital, from the remaining shareholders at completion. After completion of the acquisition, VAM Vietnam Fund Management Joint Stock Company will become a subsidiary of UOB Asset Management.
The cash consideration of VND113,680 million will be satisfied in cash on completion using UOB Asset Management's internal resources. The consideration took into account various factors including the capital, net asset value and assets under management of VAM Vietnam Fund Management Joint Stock Company.
As at Oct 31 this year, its net asset value was approximately VND26 billion and it had assets under management of approximately 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 said that the acquisition will further strengthen UOB Asset Management's Asian franchise and presence, and is in line with its regionalisation plans.