UBS Global Asset Management has completed its acquisition of a 51% stake in Daehan Investment Trust Management Company (DIMCO). The new joint venture will operate under the name of UBS Hana Asset Management Company (UBS Hana Asset Management) in English and Hana UBS Asset Management in Korean.
UBS Hana Asset Management has received all necessary regulatory approvals to complete the transaction, which was signed in May 2007. UBS Global Asset Management agreed to buy the 51% stake in DIMCO for KRW150 billion ($162.2 million) plus a KRW30 billion earn-out straight away, subject to customary purchase price adjustment and to an earn-out clawback of up to KRW30 billion over the next three to five years.
Christof Kutscher, head of UBS Global Asset Management, Asia Pacific, believes the establishment of the combined entity will be the foundation to build a strong presence for UBS Global Asset Management in Korea’s asset management industry and expand its business in the Asia-Pacific region.
“We believe that UBS Hana Asset Management will become the leading asset manager in the market,” says Kutscher. “Korea represents important business opportunities for UBS Global Asset Management and has high potential for growth, particularly for attracting foreign investments and giving Korean investors access to international capabilities.”
Andreas Neuber, chairman of the board of directors and CEO of UBS Hana Asset Management, adds that UBS Hana Asset Management plans to immediately launch four global funds representing regional markets, as well as a product that will include socially responsible investments.
UBS Hana Asset Management manages around KRW 19.9 trillion of assets. DIMCO was previously wholly owned by Hana Daetoo Securities (formerly Daehan Investment & Securities Company), a subsidiary of Hana Financial Group.