KUALA LUMPUR (July 29): CVC Capital Partners has completed the acquisition of a 68.35% stake in Affin Hwang Asset Management Bhd (Affin Hwang AM) for RM1.54 billion.
In a statement, Affin Hwang AM said the company will embark on a rebranding exercise to rejuvenate its image after 20 years, as well as reposition the company for its next growth phase.
“The rebranding exercise is expected to be fully completed by the fourth quarter of 2022 (4Q22),” Affin Hwang AM said.
It said the acquisition by CVC, which it described as a leading global private equity and investment firm, will provide it with “a strong springboard” in charting its next growth phase, particularly to elevate its wealth platform and spur the digitalisation push.
“With a fortified shareholder strength, the synergy from our partnership with CVC as well as our long-standing partner Nikko Asset Management will allow us to expand our capabilities, and broaden our suite of offerings,” said Affin Hwang AM managing director Datuk Teng Chee Wai.
“This includes leveraging CVC's expertise in private markets and alternative asset classes to drive growth in our wealth management business, as well as spearhead new digital solutions,” Teng said.
“We will continue to uphold and reinforce the trust given by our clients, which has allowed us to grow from strength to strength over the years,” he added.
Through subsidiary Starlight Asset Sdn Bhd, CVC acquired a 63%% stake in Affin Hwang AM from Affin Bank Bhd for RM1.42 billion. Starlight Asset also bought another 5.35% stake from Afffin Hwang AM’s senior management for RM120 million.
Affin Bank’s divestment resulted in a gain on disposal of RM1.063 billion for the bank, it was previously reported.
Shares in Affin Bank traded up one sen or 0.47% to RM2.14 at the time of writing on Friday (July 29), giving it a market capitalisation of RM4.73 billion.