HSBC Asset Management has bought a controlling stake in Taiwanese fund manager China Securities Investment Trust (CSIT), following a TW$3.3bn (US$103m) cash deal.
Under the terms of the deal, HSBC will acquire 52.87% of the asset manager from China Development Industrial Bank (CDIB). The deal values the business at approximately TWD6.5bn ($200m), and HSBC is also looking to acquire the remaining CSIT shares.
The agreement - financed by HSBC's internal cash resources - is still subject to due diligence work and regulatory approval, as well as other criteria.
HSBC Group chairman,Sir John Bond, said of the deal: This is an exciting acquisition representing a valuable addition to our asset management group of companies. The long-term prospects for Taiwan’s economy, asset management industry and personal banking business are bright.
At present CSIT has about TW$96.3bn (US$3bn) assets under management with 88,000 high net worth institutional and retail clients.
HSBC is being advised internally, whilst the CDIB is advised by JP Morgan Chase.
By Geoffrey Ho
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