AllianzGI in exclusive talks to buy UOB Asset Management: sources

[SINGAPORE] Allianz Global Investors (AllianzGI) is in exclusive talks to buy the asset management division of UOB, according to people familiar with the matter.

AllianzGI outbid rivals to emerge as the likeliest buyer of UOB Asset Management, and the details are being finalised on a transaction that could be valued at up to S$600 million, the people said, asking not to be identified because the discussions are private. Talks are ongoing and no final decisions have been made, the people added.

A representative for AllianzGI declined to comment. UOB said that it is focused on delivering long-term value for shareholders and meeting the customer needs, but declined to comment further.

UOB has been exploring options for its asset management arm, including a possible sale, to streamline its portfolio, people familiar with the matter said in December. Amundi, KKR and Temasek’s Seviora were also among bidders for the unit.

A key point was how much of UOB’s distribution network in South-east Asia would be included, the people have said.

Established in 1986, the wholly owned UOB subsidiary has more than S$41 billion of assets under management. In addition to Singapore, it has offices in Brunei, Indonesia, Japan, Malaysia, Thailand and Vietnam.

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AllianzGI had almost 600 billion euros (S$896 billion) in assets under management as of the end of March. That included equity, fixed income, private market and multi-asset strategies.

The company is owned by German insurer Allianz, which also owns bond manager Pacific Investment Management. BLOOMBERG