Manulife International, the Canadian-based insurer, has signed an agreement to purchase Fortis Banks 49% share of ABN AMRO TEDA Fund Management for 105 million. Old Mutual also signed an agreement in 2008 for approximately 165 million, cancelling this agreement in May 2009 and paying an exit fee of 45 million.
ABN AMRO TEDA was set up in 2002 in a joint venture between Fortis and Tianjin City in China. In 2008 Fortis Bank, the Belgian arm of financial group Fortis, was taken over by BNP Paribas.
The new entity, which will be called Manulife TEDA Fund Management Company Ltd., aims to gain fast-track entry into the China asset management industry, forecast to become one of the largest in the world in the coming decade.
“I am very pleased to announce Manulife’s ongoing investment in China with this important acquisition,” stated Robert Cook, President and Chief Executive Officer of Manulife International Holdings Limited. “We are taking advantage of a rare opportunity to propel our business forward and accelerate its growth versus a start-up development.
When coupled with our extensive experience in China through our joint venture Manulife-Sinochem, we are extremely well positioned for success.”
Marc Sterling, Executive Vice President, Asia Regional Operations, Manulife Financial added, “We are looking forward to working with our new partner, TEDA. TEDA is an outstanding organization and we are proud to be associated with them. We are also impressed by the fundamental strengths of the company and equally excited to work with the fine management team in the future.
At this time, we will begin working with the relevant Chinese regulatory authorities to ensure we have a smooth and positive transition.”
Manulife TEDA Fund Management Company Ltd also plans to seek regulatory approval for expanding its lines of business as and when permitted by CSRC (China Securities and Regulatory Commission) and other relevant bodies.
Speaking to Global Custodian, Thomas Cheong, Vice-President, China Asset Management, Manulife Financial said “Feasible areas that the new Manulife joint venture asset management company would like to tap into include: discretionary portfolio management for both institutional & high net worth clients, QDII, and enterprise annuity businesses. The company will also keep an open mind to explore any new areas or business opportunities that would be allowed by CSRC in future.”
Old Mutual pulled out of the deal following an assessment of the Asia region by Chief Executive Julian Roberts. According to an Old Mutual spokesperson at the time: “We didn’t feel it was sensible at this time to pursue a growth strategy in the Asian region … that was one of the conclusions of the review that we did.”
Giles TurnerNews Editor