CIMB-Principal Asset Management, the Kuala Lumpur-based joint venture between CIMB Group and Principal Financial Group, will acquire the asset management units of Southern Bank, creating the largest asset management company in Malaysia, said Principal spokeswoman Tina Marchetti. The combined $2 billion in assets from SBB Mutual and SBB Asset Management will lift CIMB-Principal's assets under management to a market-leading $3.8 billion, Rex Auyeung, the Hong Kong-based senior vice president-Asia operations, Principal International, said in an interview.
Principal Financial will invest $52 million of the $130 million purchase price for the SBB units to retain its 40% stake in the larger entity, according to a news release.
CIMB Group acquired Southern Bank earlier this year. The investment is the latest step in Principal's plans to beef up its presence in Southeast Asia, Norman Sorenson, the president of Principal International, said in an interview.