Hong Kong asset manager Value Partners Group has sold a 75% stake in its loss-making Malaysian unit to Kuala Lumpur-based brokerage M&A Equity Holdings for 2.75 million ringgit (US$588,680).
M&A Equity announced the acquisition in a recent filing to the Malaysian stock exchange.
Value Partners will remain as a shareholder in Value Partners Malaysia with a 25% stake.
According to M&A Equity, this will enable it to retain the Hong Kong asset manager as a strategic and equity partner “as the company will be able to leverage on Value Partners Group’s product knowledge and regional distribution exposure”.
The company, which is using internal funds to finance the deal, expects Value Partners Malaysia to complement its existing business and contribute positively to its future earnings.
The deal is expected to be completed by December 31.
Spokespersons for M&A Equity did not immediately respond to questions from Asia Asset Management. Spokespersons for Value Partners Group declined to comment.
Value Partners Malaysia became operational in December 2018, reported a small after-tax profit in 2020 and then losses in each of the following two years.
In July 2021, the company launched a China-focused Islamic exchange-traded fund, the Value Partners-Dow Jones Shariah China A-Shares 100 ETF. The fund’s net asset value as of end-June 2023 was 28.44 million ringgit.
There are now 14 ETFs listed on the Malaysian stock exchange, with total market capitalisation of 2.17 billion ringgit as of end-October.