Friday 29 Mar 2024
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KUALA LUMPUR (June 28): Hong Leong Capital Bhd (HLCB) said its wholly-owned subsidiary Hong Leong Asset Management Bhd (HLAM) has entered into an agreement with related party HL Management Co Sdn Bhd (HLMC) to acquire the entire equity interest in Hong Leong Fund Management Sdn Bhd (HLFM) for RM2.55 million.

In a filing today, HLCB said the acquisition is in line with its move to expand into the Islamic fund management business as the group sees growing demand for Islamic products and services.

It said the liberalisation of the Islamic capital market industry in Malaysia has encouraged rapid growth in the Islamic fund management industry, adding that the number of affluent Muslims in Malaysia and other Muslim countries continues to grow.

"The acquisition enables HLAM to acquire a licensed fund management company. In keeping with its primary objective of expanding into the Islamic fund management business, HLFM's conventional fund management licence will be converted to an Islamic fund management licence," said HLCB.

It said the acquisition, the change in controller of HLFM and the conversion of HLFM's licence to an Islamic fund management licence were approved by the Securities Commission Malaysia.

HLMC is a wholly-owned subsidiary of Hong Leong Co (Malaysia) Bhd, which in turn is a major shareholder of HLCB.

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