Kyobo Life takes full control of $76M asset manager, drops AXA name
What's the deal? Kyobo LifeDealroom has a profile for this one. Try Dealroom → has acquired the remaining 50% stake in Kyobo AXA Asset ManagementDealroom has a profile for this one. Try Dealroom → for 107.5 billion won, converting it into a wholly-owned subsidiary. The firm, which manages roughly 49 trillion won in assets, will rebrand as Kyobo Asset ManagementDealroom has a profile for this one. Try Dealroom → pending a shareholder vote on September 22.
Why now? The purchase from BNP Paribas Asset Management HoldingsDealroom has a profile for this one. Try Dealroom → ends an 18-year partnership that began in 2008, when Kyobo Life and France's AXA GroupDealroom has a profile for this one. Try Dealroom → formed a 50-50 joint venture. Registration of the new name is expected by early October, no later than October 2.
What changes? BNP Paribas representative Frederic Bellman has stepped down, leaving chief executive officer Cho Hwi-seong in sole charge. The shareholder meeting will vote on amendments to the articles of association to formalise the name change.
The asset manager specialises in bond management and runs the Ministry of Economy and Finance's pension fund investment pool. Its exchange-traded fund (ETF) assets total under 300 billion won, and full ownership may open expansion into retirement pensions, target-date funds, ETFs, and alternative investments.
What's the endgame? The rebrand aligns with Kyobo Life's plan to convert into a financial holding company. It has secured a 50% plus one share stake in SBI Savings BankDealroom has a profile for this one. Try Dealroom → for about 900 billion won and is weighing an acquisition of AXA InsuranceDealroom has a profile for this one. Try Dealroom →, valued at 200 billion to 300 billion won.
The AXA Insurance interest marks a full circle: Kyobo Life first acquired the business in 2001, then sold it to AXA GroupDealroom has a profile for this one. Try Dealroom → in 2007 for 90.5 billion won.
What could go wrong? Kyobo Life's K-ICS ratio, a measure of insurer capital strength, slipped from 222.60% at the end of last year to 211.39% in the first quarter. The company is relaunching an initial public offering to shore up capital and resolve issues with financial investors.
The signal: The name change signifies "a reorganization of decision-making and business strategy centered on Kyobo," an investment banking industry official said, with the asset manager positioned as a potential group asset management hub. The deal reflects a wider push by Korean insurers to consolidate and build integrated financial groups.
Read more: gate.com
Image credit: Bobbie
