UBS Global Asset Management purchases 51% of Daehan Investment Trust Management Company
UBS Global Asset Management has entered into a stock purchase agreement with Daehan Investment & Securities Company Ltd (DI&S) to acquire 51% of Daehan Investment Trust Management Company Ltd (DIMCO), one of Korea's largest asset management companies. Under the joint venture, DIMCO will be known as UBS Hana Asset Management Company Ltd (UBS Hana Asset Management) internationally, and as Hana UBS Asset Management in Korean. The transaction remains subject to regulatory approval.
DIMCO manages around KRW18.7 trillion (equivalent to approximately USD20.3 billion or
CHF24.7 billion) of assets and is one of the market leaders in the Korean asset
management industry. It is wholly owned by DI&S, which itself is wholly owned by Hana
UBS Global Asset Management will pay KRW150 billion (equivalent to approximately USD162.2 million or CHF197.5 million) plus a KRW30 billion (equivalent to approximately USD32.4 million or CHF39.5 million) earn-out for its stake immediately, subject to customary purchase price adjustment and to an earn-out claw back of up to KRW30 billion over the next three to five years.
The joint venture will combine the international know-how of UBS Global Asset Management with the domestic expertise of DIMCO. To that extent the two parties will work together to apply UBS standards in investment research, portfolio management, risk management, sales and marketing, operations, internal controls and compliance to the operation of the joint venture.
"The establishment of the joint venture between UBS and DIMCO is another important step towards fulfilling UBS Global Asset Management's ambition to build a strong presence in Korea's asset management industry and broaden the scope of our business in Asia Pacific," said John FRASER, Chairman and Chief Executive Officer of UBS Global Asset Management.
"UBS Hana Asset Management will be one of the largest asset managers in the Korean market which represents an important source of new business for UBS. In light of Korea's strong underlying economic growth, continuing reform of the pensions market and the increasing sophistication of investors, we believe that the Korean asset management market offers very significant potential for growth and will be an increasingly attractive destination for foreign investment," he added.
"UBS's expertise in the international arena complements perfectly Daehan Investment Trust Management Company's well established foothold in and knowledge of, the Korean market. I am confident that having UBS as a partner will allow us to ensure that the company operates in accordance with international best practices but also enhances our ability to meet the needs of the growing client base in Korea," said Vice-Chairman Wangha CHO at DI&S.
"I look forward to working with our new partners. We will combine UBS's specialized knowledge and global perspective, with the local market knowledge and expertise of DIMCO's existing employees. The combination of our respective strengths will create what I am confident will be a united business which will be better able to meet the needs of its clients and interests of its shareholders," added Andreas NEUBER, Head of Strategic Projects Asia Pacific at UBS Global Asset Management and designated Chairman of the Board of Directors at UBS Hana Asset Management.
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