Prudential’s Asian asset management arm Eastspring Investments has agreed to purchase a 50.1% stake in Thanachart Fund Management (TFUND), a Thailand-based mutual fund manager, in a deal valued at £108m.
The sellers are Thanachart Bank Public Company (TBANK) and Government Savings Bank (GSB).
Eastspring also has the provision to become the sole owner of TFUND eventually.
Managing £5.4bn in assets, TFUND ranks as the eighth largest mutual fund manager in Thailand.
Prudential Corporation Asia CEO Nic Nicandrou said: “By signing this agreement, we are seizing the opportunity to acquire a highly attractive business in the growing Thai market and work more closely with strong partners – TMB and TBANK.
“Following the demerger of the Group’s UK and Europe business, M&GPrudential, Prudential plc will become Asia-led, which means we will be even more focused on meeting the insurance and savings needs of Asian consumers.
“The acquisition of TFUND not only complements our existing business but allows us to accelerate our growth and extend our presence in this dynamic market.”
The latest deal is subject to regulatory nod and the takeover of TBANK by TMB Bank Public Company (TMB).
Present in Asia for 25 years, Eastspring oversaw £169bn in assets at the end of June 2019.
Last year, Eastspring acquired a 65% stake in Thailand’s TMB Asset Management (TMBAM) from TMB. The acquired entity now operates under the name TMBAM Eastspring.
Together, TFUND and TMBAM Eastspring will be the fourth largest asset manager in Thailand with £16.7bn in assets.
Prudential has been present in Thailand for over two decades and caters to more than 1.6 million clients in the country.