Samsung Securities, Hong Kong PE Fund to Acquire 40% Stake in Vietnam’s No. 1 Fund Manager

Tuan Minh

16:09 07/09/2017

BizLIVE - The acquisition is part of Samsung Securities’ plan make it inroads into Vietnam’s stock market.

Samsung Securities, Hong Kong PE Fund to Acquire 40% Stake in Vietnam’s No. 1 Fund Manager

Samsung Securities is moving to acquire a 10% stake in Dragon Capital.

Samsung Securities will partner with Caldera Pacific, a Hong Kong private equity fund, to acquire a combined 40% stake in Dragon Capital, the largest asset management company in Vietnam, Business Korea reported.
With such a stake, the two firms will become the second-largest shareholder in Dragon Capital where Caldera Pacific will step in as a general partner (GP) and Samsung Securities as a limited partner (LP).
Samsung Securities will own about 10% of the whole stake in Dragon Capital, the newspaper added. It will hold in a board meeting on September 7 and wrap up the final contract.
It is unknown how much Samsung Securities will spend on the acquisition, but it is known that the firm will shell out a considerable portion of funds for the takeover of Dragon Capital.
With the acquisition, Samsung Securities aims to accelerate its inroads into the Vietnamese market by acquiring a stake in a local asset management company rather than establishing a corporation, a general overseas advancement type.
"The opening of an office or a corporation, a general overseas advancement form, takes a lot of time from the input of money to the results. But the takeover of a stake in a local asset management company allows a company to efficiently secure a sales network and infrastructure effectively," an official familiar with the acquisition said.
Unlike Mirae Asset, the Shinhan Financial Group, and Korea Investment, which all set up their corporations in the early stages of their operations in Vietnam, Samsung Securities has no bridgehead to the Vietnamese market, except for strategic alliance forged with Ho Chi Minh Securities Corp (HSC) in March.
Therefore, Samsung Securities will likely acquire additional stakes in other companies with this investment as a beginning, according to market experts.
Established in 1994 with $16 million, Dragon Capital is now Vietnam’s longest established independent asset manager, overseeing over $2.32 billion as of July 31, 2017 in listed equity, clean-tech, fixed income and real estate for international pension and sovereign wealth funds and endowments.
The Vietnamese company also played a role as a bridgehead for Hong Kong capital's entry into Vietnam.

TUAN MINH