Swiss finance group UBS Global Asset Management has entered into an agreement to acquire a 51% stake in Daehan Investment Trust Management Company, a South Korean asset manager.
Under the terms of the joint venture, Daehan Investment Trust Management Company (DIMCO) will be known as UBS Hana Asset Management Company internationally, and as Hana UBS Asset Management in Korea.
As part of the agreement, UBS Global Asset Management will pay KRW150 billion, along with an additional KRW30 billion earn-out for its stake immediately, subject to customary purchase price adjustment and to an earn-out claw back of up to KRW30 billion over the next three to five years.
DIMCO is an important player in the Korean asset management market, managing assets worth approximately KRW18.7 trillion. The joint venture will combine the international know-how of UBS Global Asset Management with the domestic expertise of DIMCO.
The establishment of the joint venture between UBS and DIMCO is another important step towards fulfilling UBS Global Asset Management’s ambition to build a strong presence in Korea’s asset management industry and broaden the scope of our business in Asia Pacific, said John Fraser, chairman and CEO of UBS Global Asset Management.