Eastspring Investments (“Eastspring”), the Asian asset management business of Prudential plc (“Prudential”), has successfully completed its acquisition of 50.1 per cent of Thanachart Fund Management Co., Ltd. (“TFUND”) from Thanachart Bank Public Company Limited (“TBANK”) and Government Savings Bank1, with TBANK holding the remaining 49.9 per cent stake of TFUND.
On 9 August 2019 and 30 September 2019, Eastspring announced that it would acquire the 50.1 per cent stake in TFUND for approximately THB 4,208 million (USD 137 million), with an option to increase its ownership to 100 per cent in the future. TFUND is the 8th largest mutual fund manager in Thailand, with THB 206 billion (USD 6.8 billion)2 of mutual funds under management.
The acquisition complements Eastspring’s purchase of 65 per cent of TMB Asset Management, now TMBAM Eastspring, in September 2018. With the latest transaction, Eastspring becomes Thailand’s fourth largest asset manager, with a market share of 12 per cent and combined assets under management of THB 653 billion (USD 21.6 billion)3 through the two fund management firms.
Eastspring now has access to a large and growing consumer base in Thailand through TBANK, which recently completed its merger with TMB Bank Public Company Limited (TMB). The newly formed bank is the sixth-largest in Thailand, with 10 million retail customers, more than THB 2 trillion (USD 65 billion)4 in total assets and over 900 branches across the country.
Prudential has operated in Thailand for more than 20 years through Prudential Life Assurance (Thailand) Public Company Limited. Prudential serves more than 1.6 million customers in Thailand and manages more than THB 107 billion of assets on their behalf5.
Eastspring is Asia’s leading retail asset manager, with USD 216 billion (GBP 169 billion) of assets under management6 and has been operating in Asia for 25 years.
1 Eastspring will acquire GSB’s entire 25.0 per cent stake in TFUND and a 25.1 per cent stake from TBANK.
2 Mutual funds under management as at 30 November 2019.
3 Mutual fund market shares; Mutual fund assets under management as at 30 November 2019.
4 Source: (https://www.ing.com/Newsroom/News/TMB-and-Thanachart-Bank-agree-to-merge-by-year-end.htm)
5 As of 30 June 2019.
6 As of 30 June 2019.