UOB said on Monday that its wholly owned subsidiary, UOB Asset Management, entered a deal to acquire 75 percent of Indonesia-based PT PG Asset Management (PGAM) from PT Multikem Suplindo for S$2.25 million.
“The acquisition would further strengthen UOBAM’s Asian franchise and presence and is in line with the UOB Group’s regionalisation plans,” UOB said in the statement.
The purchase price will be paid in cash on the deal’s completion from UOBAM’s internal resources, it said in a filing to SGX after the market close on Monday.
The consideration took into account PGAM’s net asset value and assets under management, which were 7.7 billion rupiah (S$700,000) and 255.4 billion rupiah (S$24.1 million), respectively, as of 28 September, it said.
The deal’s completion is conditional upon regulatory approvals in Indonesia and Singapore, the filing said. After its completion, PGAM will become a UOBAM subsidiary, it said.
UOBAM manages collective investment programs and discretionary funds in Singapore and had S$32.4 billion in clients’ assets as of 31 July, the filing said. It has a presence in Thailand, Brunei, Taiwan and Japan, and manages 56 unit trusts in Singapore, it said.
PGAM is an Indonesian asset management company which conducts conventional and structured fund management activity, including managing mutual funds, hedge funds, private equity and REITs, it said.
The other PGAM shareholder, Multikem Suplindo, is a wholly owned subsidiary of Celebes Capital, it said.