OCBC subsidiary Lion Global Investors is to sell its 70% stake in Pacific Mutual Fund (PMF); which manages fixed income, equity and Islamic funds in Malaysia, to the Bank of Singapore (BOS).
The remaining stake, which is also being acquired, is owned by Malaysian savings and loans co-operative Koperasi Angkatan Tentera.
BOS will pay cash for the firm, which is subject to approvals from the Monetary Authority of Singapore and Securities Commission Malaysia.
Financial details were not disclosed.
The deal will see the private bank extend its presence in Malaysia, which is home to around 600 ultra-high net worth individuals with assets of more than $30m (£23.5m, €26.3m), according to the 2019 Knight Frank Wealth Report.
The number of ultra-high net worths is expected to grow by 31% by 2023, with a 27% jump in the number of millionaires in the country, of which there are currently 30,000.
All in the family
The transaction involves mainly subsidiaries of OCBC. Upon completion, PMF will become a wholly-owned subsidiary of BOS, which is a wholly-owned subsidiary of OCBC Bank.
The deal is not expected to have any material impact on the net tangible assets or earnings per share of OCBC Group for the financial year ending 31 December 2019, the bank said.
BOS was created in 2010 following OCBC’s purchase of ING Asia Private Bank a year earlier, in the wake of the global financial crisis.
In 2016, BOS bought the wealth and investment management business of Barclays in Singapore and Hong Kong, acquiring $13bn of assets.
As of 31 December 2018, BOS’s total assets under management was $102bn, according to the bank’s website.
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