M&A Equity Holdings Berhad has proposed to acquire a 75% stake in Value Partner Asset Management for a total cash consideration of RM2.75 million.
The Board shared additional information in relation to the planned acquisition with regard to the date of license issued by the Securities Commission Malaysia for VPAM to carry out fund management services. In a Bursa filing M&A said the license date was 28 December 2018. It also added that the Shareholders Agreement to be entered into between the Parties and VPAM has yet to be finalised.
Additional details include the existing investment management agreement between VPAM and VPHK, which provides for VPHK to manage the VP-DJ Shariah China A-Shares 100 ETF, subject to the supervision of VPAM. The management fee payable to VPHK is 20% of the total management fee received by VPAM in respect of the Fund. The investment management agreement may be terminated by either party with 90 days written notice.
MEH said the rationale for the shareholding structure of 75% and 25% owned by VPGL upon completion of the Proposed Acquisition is to enable the Company to retain VPGL as a strategic and equity partner as we will be able to leverage on VPGL’s product knowledge and regional distribution exposure.
