TIDMPRU
RNS Number : 1822O
Prudential PLC
30 September 2019
30 September 2019
Prudential's Eastspring signs agreement to acquire Thanachart
Fund
Eastspring Investments ("Eastspring"), the Asian asset
management business of Prudential plc ("Prudential"), has signed an
agreement to acquire 50.1 per cent of Thanachart Fund Management
Co., Ltd. ("TFUND") from Thanachart Bank Public Company Ltd.
("TBANK") and Government Savings Bank (GSB) (1) . Following this
acquisition TBANK's customers will have access to Eastspring's
world class investment solutions.
The consideration for the 50.1 per cent stake is THB 4,208
million (GBP 108 million)(2) . Completion is conditional on, among
other things, regulatory approval and the acquisition of TBANK by
TMB Bank Public Company Limited ("TMB"). The two banks signed an
agreement to merge on 8 August 2019.
The acquisition of TFUND reinforces Prudential's commitment to
the Thai market and complements Eastspring's acquisition of 65 per
cent of TMB Asset Management (now TMBAM Eastspring) that was
completed in September 2018. Similar to the TMBAM acquisition,
Eastspring has an option to increase ownership of TFUND to 100 per
cent in the future.
TFUND is the 8(th) largest mutual fund manager in Thailand, with
THB 212 billion(3) (GBP 5.4 billion) of mutual funds under
management. TFUND and TMBAM Eastspring will collectively be the
4(th) largest asset manager in Thailand with a market share of 12
per cent and a combined AUM of THB 653 billion(4) (GBP 16.7
billion).
When the merger of TBANK and TMB is completed, it will become
the 6(th) largest bank in Thailand with 10 million retail
customers, more than THB 2 trillion (GBP 51 billion) in total
assets, and over 900 branches across the country providing
Eastspring access to a large and growing consumer base.
Nic Nicandrou, Chief Executive of Prudential Corporation Asia,
said: "As a leading life insurer and asset manager in Asia,
Prudential is committed to helping customers protect their health
and grow their wealth. By signing this agreement, 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 TBANK.
"Following the demerger of the Group's UK and Europe business,
M&GPrudential, Prudential plc will become Asia-led, which means
we will be even more focused on meeting the insurance and savings
needs of Asian consumers. The acquisition of TFUND not only
complements our existing business but allows us to accelerate our
growth and extend our presence in this dynamic market."
Thailand is one of the largest and fastest growing asset
management markets in the ASEAN region(5) due to an expanding
middle class, rising affluence, strong savings culture and low
mutual fund penetration rate compared to more developed
markets.
Piti Tantakasem, Chief Executive of TMB, said: "With this
acquisition, Eastspring has confirmed its commitment to Thailand,
and to our partnership. We welcome 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."
Prudential has operated in Thailand for more than 20 years
through Prudential Life Assurance (Thailand) Public Company
Limited. Prudential serves more than 1.6 million customers in
Thailand and manages more than THB 107 billion of assets on their
behalf(6) .
Eastspring is Asia's leading retail asset manager with USD 216
billion (GBP 169 billion) of assets under management(7) and has
been operating in Asia for 25 years.
Enquiries:
Media Investors/Analysts
+44 (0)20 3977
Anneliese Diedrichs +65 8799 9241 Patrick Bowes 9702
+44 (0)20 3977
+44 (0)20 3977 William Elderkin 9215
Tom Willetts 9760 Darwin Lam +852 2918 6348
Notes to Editors:
Exchange rates of GBP 1 = THB 39.0592, which is the closing
exchange rate as of 30 June 2019, have been used throughout this
document.
About Eastspring Investments
Eastspring Investments is a leading Asia-based asset manager
that manages over USD 216 billion (as at 30 June 2019) of assets on
behalf of institutional and retail clients. Operating in Asia since
1994, Eastspring Investments is the Asian asset management business
of Prudential plc, an international financial services group, and
has one of the widest footprints across the region*. We provide
investment solutions across a broad range of asset classes
including equities, fixed income, multi asset solutions and
alternatives and are committed to delivering high quality
investment outcomes for our clients over the long term. Eastspring
Investments is a signatory to the United Nations-supported
Principles for Responsible Investment (PRI), a voluntary program
which encourages best practice in environmental, social and
corporate governance issues. For more information on Eastspring
Investments, please visit: www.eastspring.com
*Eastspring Investments (excluding JV companies) companies are
ultimately wholly-owned / indirect subsidiaries / associate of
Prudential plc of the United Kingdom. Eastspring Investments
companies (including JV's) and Prudential plc are not affiliated in
any manner with Prudential Financial, Inc., a company whose
principal place of business is in the United States of America.
About Prudential plc
Prudential plc and its affiliated companies constitute one of
the world's leading financial services groups, serving 26 million
customers and it has GBP717 billion of assets under management (as
at 30 June 2019). Prudential plc is incorporated in England and
Wales and is listed on the stock exchanges in London, Hong Kong,
Singapore and New York. Prudential plc is not affiliated in any
manner with Prudential Financial, Inc., a company whose principal
place of business is in the United States of America.
Footnotes
1 Eastspring will acquire GSB's entire 25.0% stake in TFUND and
a 25.1% stake from TBANK.
2 Based on GBP 1 = THB 39.0592 which is the closing exchange rate as at 30 June 2019.
3 Mutual funds under management as at 31 August 2019.
4 Mutual fund market shares; Mutual fund assets under management as at 31 August 2019.
5 Source: Cerulli Asset Management in Southeast Asia 2019 Report, data as of Dec 2018.
6 As of 30 June 2019.
7 As of 30 June 2019.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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