Maybank buys PNB mutual fund business for RM51mil


Fitch Ratings said Maybank's long-term IDRs and viability rating (VR) reflected its dominant franchise in Malaysia and able management team, which help to underpin its stable funding and liquidity position, sound capital buffers and steady earnings performance through business cycles.

KUALA LUMPUR: Malayan Banking Bhd said it wholly owned unit Maybank Asset Management Group Bhd is buying Permodalan Nasional Bhd’s (PNB) mutual fund business in Malaysia and Singapore for RM51mil cash.

The bank will later sell a 20% stake in its enlarged Maybank Asset unit back to its parent company PNB for RM50mil.

The proposed acquisitions, the bank said, will facilitate Maybank Asset 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.

“Such access and expansion of its presence in the market is expected to increase its asset under management and consequently, management fee income,” it said.

The deal entails Maybank Asset buying Amanah Mutual Bhd (AMB) and Singapore Unit Trust Ltd (SUTL) from PNB for RM16.12mil and RM34.88mil respectively.

PNB would later subscribed to 8,336,404 new shares in Maybank Asset for RM50mil, or RM6 a share.

AMB’s business focus is towards retail clients, engaging them to invest in their performing funds with investments in equities, bonds, short-term money market instruments and other capital market instruments.

SUTL’s business focus is on institutional clients.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!
   

Next In Business News

Perodua surpasses 250,000-unit mark, beats 2022 sales target
Asian shares tentative ahead of U.S. payrolls data, dollar nurses losses
U.S. Fed policy now more hawkish than policy rules suggest is needed
Ringgit opens higher vs US dollar for third day running
Quick take: Ranhill slips despite RM50mil contract win
FBM KLCI slips in early trade on profit taking
Trading ideas: AMMB, QL Resources, KNM, Sime Darby Plantation, Ireka, KPS, Ranhill Utilities
US economy grew slightly, inflation and rates cloud outlook
Wall St preps for year-end stock rally
Loan demand to buoy Malaysia banking sector

Others Also Read