Malaysia’s AMMB muling sale of RM1.3b asset manager, sources say

AMMB Holdings Bhd, a financial services group in Malaysia, is weighing a sale of its asset management unit that could be valued at as much as US$300 million (RM1.33 billion), according to people with knowledge of the matter.

The Kuala Lumpur-listed company has been approached by other industry players and private equity firms which have expressed interest in AmInvest, the people said. A deal could value the asset management unit at between US$250 million and US$300 million, said the people, who asked not to be identified as the information is private.

Considerations are at an early stage and there is no guarantee that AMMB will proceed with a sale, the people said. A representative for AMMB couldn’t immediately comment.

AMMB could be joining other banks in Southeast Asia that are divesting their non-core assets. In Thailand, Kasikornbank Pcl is considering selling its asset management arm, Bloomberg News has reported. Affin Bank Bhd. in Malaysia won the local regulator’s approval this month to sell its 63% stake in Affin-Hwang Asset Management Bhd., according to an exchange filing.

AmInvest is the brand name for the fund management business of AMMB comprising AmFunds Management Bhd. and AmIslamic Funds Management Sdn Bhd., according to its website. The firm has over 40 years of investing experience with total assets under management of about 47.6 billion ringgit (US$10.7 billion) as of the end of March. – BLOOMBERG