OCBC Acquires Malaysian Asset Manager
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Following the acquisition, Horizon Asset Management is now a wholly-owned subsidiary of OCBC Bank through Kim Limited.
OCBC Bank subsidiary Kim Limited has bought the remaining 51 percent of shares in the Malaysian asset manager for RM2.55 million ($630 million) from Sharosu Assets, according to a bourse filing on Thursday.
The consideration, which was determined based on the mutually agreed price of RM1 per share, will be paid in cash, the announcement said. The audited net tangible asset value represented by the proposed acquisition as at Dec 31, 2019, was about RM420,000.
The bank said the acquisition is not expected to have any material impact on the net tangible assets or earnings per share of OCBC Group for the financial year ending 31 December 2021.
Questions & Answers
Q.What entity completed the acquisition of Horizon Asset Management?
What entity completed the acquisition of Horizon Asset Management?
OCBC Bank's subsidiary, Kim Limited, completed the acquisition. It purchased the remaining 51 percent of shares from Sharosu Assets, making Horizon Asset Management a wholly-owned subsidiary.
Q.How much was paid for the 51% stake in Horizon Asset Management?
How much was paid for the 51% stake in Horizon Asset Management?
Kim Limited paid RM2.55 million, equivalent to $630 million, for the 51% stake. The payment will be made in cash, based on a mutually agreed price of RM1 per share.
Q.Will this acquisition significantly affect OCBC Group's financial performance?
Will this acquisition significantly affect OCBC Group's financial performance?
No, the bank stated that this acquisition is not expected to have any material impact on OCBC Group's net tangible assets or earnings per share for the financial year ending 31 December 2021.
Q.What was the audited net tangible asset value of the acquired company in 2019?
What was the audited net tangible asset value of the acquired company in 2019?
As of 31 December 2019, the audited net tangible asset value represented by the proposed acquisition was approximately RM420,000. This figure provides a baseline for the company's value.
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