SCB X weighs options for $1.5bn asset management unit

SCB X weighs options for $1.5bn asset management unit

SCB X Plc is considering options including a sale of its asset management unit, people familiar with the matter said, amid growing industry consolidation in Southeast Asia’s second-largest economy.

SCB X, formerly known as Siam Commercial Bank Plc, has been speaking with financial advisers to explore a potential transaction for SCB Asset Management Co, the people said, asking not to be identified because the matter is private. A potential deal could value the business at US$1 billion to $1.5 billion, the people said.

Other industry players have shown preliminary interest in SCB X’s asset manager, the people said. Considerations are at an early stage and SCB X could still decide against pursuing any deal, the people said.

“Given the strategic importance of asset management, the company regularly evaluates strategic options, proposals, and opportunities which may involve consultation with external advisors,” SCB X said in an exchange filing on Monday. “Such discussions are in early stages and there is no certainty or assurance that any such transactions may occur.”

In another statement later Monday, SCB X said reports that it’s considering a sale of the asset management business are “unfounded”, though it assesses strategic alternatives as part of its regular business operations.

SCB Asset Management was set up in 1992 and manages mutual funds, provident funds and private funds, according to its website. Its net asset value under management reached about 1.6 trillion baht ($44 billion) as of the end of May.

Banks in the region are seeking to raise capital by selling non-core assets, while some asset managers look for growth via mergers and acquisitions. 

Kasikornbank Plc has also been weighing options including a sale of its asset management unit amid interest from potential buyers including Europe’s largest fund manager Amundi SA, Bloomberg News has reported.

Do you like the content of this article?
COMMENT

Hong Kong's crypto industry eager for policy support

HONG KONG: Hong Kong's cryptocurrency entrepreneurs and investors are looking to the government to take more measures to support the industry amid growing concerns about the city's diminishing status as a crypto hub resulting from regulatory uncertainty.

25 Sep 2022

Russia vows to fix mistakes after old, sick people mobilised

MOSCOW: Russian authorities on Sunday promised to fix the mistakes in their troop call-up for Ukraine, after some public outrage over students, older or sick people being mistakenly ordered to report for duty.

25 Sep 2022

Super Typhoon Noru slams into the Philippines

Super Typhoon Noru slammed into the Philippines Sunday, battering the heavily populated main island of Luzon with strong winds and heavy rain that have forced hundreds of people to flee their homes.

25 Sep 2022