BNP Paribas Asset Management today signed a share purchase agreement with Shinhan Financial Group for the acquisition of Shinhan Investment Trust Management Company shares.
According to the terms of the agreement, BNP Paribas Asset Management acquires 50% minus 1 share of the existing company to Shinhan Financial Group for a price of KRW 23.75 billion (EUR 19.8 million). Depending on the revenues generated by the joint venture company through Shinhan networks during the next 3 years, additional payments will be given to Shinhan of up to KRW 11.25 billion (EUR 9.4 million).
BNP Paribas Asset Management will provide expertise in investment management, risk management and marketing know-how, while Shinhan will provide its Group networks such as Bank and Securities for the distribution and sales of the joint venture fund products.
The newly created Shinhan-BNP Paribas Investment Trust Management Company’s objectives are to establish its reputation through superior performance , quality and diversification of products, with the aim to be among the top 10 ITMCs by the end of this year and in the top 5 by 2005.
The establishment of this joint venture in the asset management business will complement the on-going establishment of other joint ventures (in consumer finance with Cetelem and bancassurance business with Cardif) between Shinhan Financial Group and BNP Paribas.