UOB to sell asset management arm for $555 million to Allianz Global Investors
All 500 existing employees will transition to AllianzGI, which has formally committed to maintaining their employment.
UOB has decided to sell its asset management division to Allianz Global Investors, striking a deal valued at $555 million. This strategic move will result in a significant capital gain for the Southeast Asian bank, with a pre-tax gain of approximately $330 million anticipated from the transaction. The sale of UOB Asset Management, which has been in operation for four decades, will boost UOB's Common Equity Tier 1 capital ratio by an estimated 14 basis points.
The asset management arm, which boasts a $223 million net asset value, will be transferred to AllianzGI, encompassing its operations across Singapore, Brunei, Indonesia, Japan, Malaysia, Taiwan, Thailand, and Vietnam. In return for the acquisition, UOB will focus exclusively on wealth advisory and distribution services to its eight million retail clients throughout ASEAN.
The partnership between UOB and AllianzGI will include a long-term strategic distribution arrangement, providing UOB's clients with access to AllianzGI's global product suite alongside an expanded range of investment solutions. UOB CEO and Deputy Chairman Wee Ee Cheong emphasized that this collaboration will strengthen the bank's focus on wealth advisory while meeting the evolving and sophisticated investment needs of its regional clients.
Upon completion of the transaction in 2027, subject to regulatory approvals, AllianzGI will double its presence in Singapore, absorbing the regional franchise that managed $42 billion in assets by the end of 2025. All 500 employees currently working for UOB Asset Management will remain with AllianzGI, who have pledged to maintain their employment throughout the transition period. This move will ensure uninterrupted customer services and fund access during the transition.
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