UOB ends fund management joint venture in Malaysia

FOLLOWING the merger of the investment banking arm of the OSK group into the RHB group, United Overseas Bank and the OSK/RHB mroup have agreed to terminate their various joint ventures in the fund management business in Malaysia.

As part of the termination agreement, UOB Asset Management (UOBAM) will acquire all the shares of in UOB-OSK Asset Management owned by RHB Investment Bank.

The shares, which work out to a 30 per cent stake, will be purchased for RM26.2 million.

UOBAM will sell its 30 per cent stake in OSK-UOB Islamic Fund Management for RM3 million to OSK-UOB Investment Management.

United Overseas Bank (Malaysia) will also sell its 30 per cent stake in OSK-UOB Investment Management to RHB Investment Bank for RM43.1 million.

Completion of the transactions is subject to the approval of regulators in Malaysia and Singapore.