KUALA LUMPUR: Malayan Banking Bhd’s (Maybank) wholly owned subsidiary, Maybank Asset Management Group Bhd, is acquiring Permodalan Nasional Bhd’s (PNB) mutual fund business in Malaysia and Singapore for RM51 million.
The deal entails Maybank Asset buying Amanah Mutual Bhd (AMB) for RM16.12 million and Singapore Unit Trust Ltd (SUTL) for RM34.88 million from PNB.
In a filing to Bursa Malaysia today, Maybank has also entered into a conditional share subscription agreement with PNB for the subscription by PNB of 8.34 million new ordinary shares in Maybank Asset for RM50 million cash, or RM6 per share.
The acquisitions will facilitate Maybank Asset’s presence in the retail market of the asset management business in Malaysia and Singapore.
“It will also result in the creation of a larger entity with deeper investment expertise, allowing Maybank Asset to tap into new growth areas with access to the retail market in Malaysia.
“Maybank Asset will also be able to expand its presence in the retail and institutional markets in Singapore. Such access and expansion of its presence in the market is expected to increase its AUM (asset under management) and consequently, management fee income,” it said.
Maybank said through the unit trust funds currently managed under AMB and SUTL, the acquisitions will also increase the number of products which Maybank Asset can offer.
“An increase in the number of products offered to investors will allow Maybank Asset to increase its unitholder base, targeting a wider variety of retail and institutional investors with different investment needs and offering more choices of asset allocation with the aim to grow its market share as an asset management player,” it said.
Maybank said the purchase for the acquisitions will be funded through inter-company loan to be extended by Maybank to Maybank Asset.