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UOB's Fund Arm Agrees To Buy Vietnam Firm
The agreement is subject to regulatory clearance.
United Overseas Bank's asset management arm intends to buy VAM Vietnam Fund Management for VN113..68 billion ($6.7 million) in cash, tapping into the perceived growth potential of Vietnam, media reports said.
UOB Asset Management, a wholly-owned subsidiary of UOB, 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 Business Times (of Singapore), DealStreetAsia and other media reported yesterday.
Regulatory approvals in Vietnam and Singapore must be secured before the acquisition can go through, the BT said.
WealthBriefingAsia was unable to locate references to the acquisition agreement on the UOB website. The VAM website had no English language coverage of the matter on its webiste.
When approvals come through, 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, reports said.
Once the acquisition is complete, VAM Vietnam Fund Management Joint Stock Company will become a subsidiary of UOB Asset Management.
