United Overseas Bank (UOB) is exploring options for its asset management arm, including a possible sale, according to people familiar with the matter, as the Singaporean lender seeks to streamline. UOB is working with a financial adviser on a potential sale of UOB Asset Management, the people said, asking not to be identified because the deliberations are private. Other options include bringing in a partner to boost the unit’s growth, the people said.
A transaction may value UOB’s asset management business at several hundred million dollars, some of the people said.
Established in 1986, the UOB subsidiary had about $37.2 billion of assets under management at the end of the first quarter, its website shows. Based in Singapore and wholly owned by UOB, the asset manager also has a presence in Brunei, Indonesia, Japan, Malaysia, Taiwan, Thailand and Vietnam.
UOB Asset Management may draw interest from other industry players as well as insurers and private equity firms, the people said. Considerations are preliminary and may not result in a transaction, they said. Declining to comment on the subject, a representative for UOB said the bank is focused on delivering long-term value to shareholders and meeting customer needs.
UOB last month set aside aprovision of $615 million, its biggest ever, citing commercial real estate risks in the US and Greater China. The bank’s shares have fallen about 4% this year, while the Straits Times Index has rallied 21%.
