Mainboard-listed New Silkroutes Group (NSG) said yesterday that its unit, New Silkroutes Capital (NSC), will acquire a 66 per cent stake in European fund manager Culross Global Holdings for US$2.6 million (S$3.5 million).
NSG said that with the acquisition, NSC will not only garner essential wealth management capabilities but also be able to operate seamlessly in European time zones in key European cities.
Among other things, NSC will be responsible for raising funds to support the group's investments primarily in the energy and healthcare sectors.
"Think of NSC as NSG's financial dashboard, through which we will raise and allocate funds to support our energy, healthcare and real estate investments and projects," said Dr Goh Jin Hian, group CEO. "Some of this financial expertise will come from Culross Global, which has a significant representation in Europe's fund management industry."
NSG will pay US$2.6 million in cash and new shares as consideration for the acquisition, following which the target companies will operate under NSC's brand name.
Culross Global had US$2.2 million in net tangible assets and made US$1 million in after-tax profit in the financial year ended Dec 31, 2016.
Founded in 1992 out of London and now headquartered in Malta, it is an independent, absolute-return fund manager servicing institutional and high net worth investors.
With offices in London, Switzerland and Malta, it is registered with Britain's Financial Conduct Authority, the Swiss Financial Market Supervisory Authority and the Malta Financial Services Authority, and has expertise investing in alternative investment products as well as foreign exchange, fixed income and equities, said NSG.