Eastspring Investments, Prudential PLC's Asian asset management arm, signed an agreement to acquire a 50.1% stake in Bangkok-based Thanachart Fund Management Co. from Thanachart Bank Public Co. and Government Savings Bank for 4.2 billion Thai baht ($137.3 million), according to separate announcements by Eastspring and Thanachart Bank.
The acquisition of a majority stake in Thailand's eighth biggest mutual fund manager, with 212 billion baht in assets under management, would be Eastspring's second Thai asset management purchase in the past year or so.
Last October, Eastspring announced the acquisition of 65% of TMB Asset Management Ltd., Thailand's fifth largest asset manager with £10 billion ($12.3 billion), from TMB Bank Public Co.
Eastspring has an option, for both Thanachart Fund Management Co. and TMB Asset Management Ltd., to increase its ownership stake to 100% in the future.
Eastspring's acquisition of the 50.1% stake in Thanachart Fund Management Co. — with Thanachart Bank agreeing to sell 25.1% of its 75% stake in the asset manager and Government Savings Bank selling its entire 25% stake — is conditional on TMB Bank completing its acquisition of Thanachart Bank, in line with an agreement the two banks signed Aug. 8.
According to an announcement Monday by Thanachart Bank, following the completion of the sale of its shares in Thanachart Fund Management Co. to Eastspring parent Prudential, Thanachart Fund Management and TMB Asset Management Co. will be merged — creating Thailand's fourth biggest asset management company in terms of assets under management.
"We are seizing the opportunity to acquire a highly attractive business in the growing Thai market and work more closely with strong partners — TMB and Thanachart Bank," said Prudential Corp. Asia CEO Nic Nicandrou in the Eastspring news release.
TMB CEO Piti Tantakasem in the news release welcomed "Eastspring's expansion in this market and its continued support for our open architecture, which is designed to provide customers of our merged bank with access to world-class products and services."
Eastspring had $216 billion of assets under management as of June 30.