Private equity major KKR is among a group of bidders exploring an investment in the asset management arm of United Overseas Bank, according to a report by Bloomberg citing unnamed people familiar with the matter.
The report cites the sources as revealing that KKR, alongside Amundi and Seviora, has submitted a non-binding offer for UOB Asset Management. Discussions are ongoing though, and no final decision has been made, while additional bidders could still emerge.
The potential transaction would mark another example of private equity targeting traditional asset management businesses as firms look to scale investment platforms and expand distribution capabilities across Asia.
A key issue in the negotiations is the extent to which UOB would include access to its Southeast Asian distribution network as part of any deal, two of the people said. The bank is said to be reviewing options for the unit as part of a broader effort to streamline its portfolio.
UOB Asset Management, founded in 1986, had approximately SGD41bn ($32bn) in assets under management as of November. The business operates across several markets in the region, including Singapore, Indonesia, Malaysia, Thailand and Vietnam.
