S Korea’s Mirae Asset, Vietnam’s SCIC launch joint venture

According to a statement, the South Korean asset manager will acquire a full stake in Tin Phat Management Fund Joint Stock Company and issue shares worth about 30 per cent of its total holding to a SCIC subsidiary to form a joint venture.

By establishing the joint venture, the South Korean firm will operate in Vietnam as a legal entity instead of as a branch in the country. According to the statement, Mirae Asset Financial Group Chairman Park Hyeon-Joo said the company plans to establish new funds in Vietnam and diversify its portfolio to include real estate and private equity funds.

The asset management firm on February 20 signed an agreement to acquire Global X Management Company (Global X), the New York-based provider of exchange-traded funds (ETF).

The press statement did not provide financial details of the deal but a Business Korea report said Mirae Asset Global Investments paid about $488 million in total to take over a 100 per cent stake in Global X. If the acquisition is approved, Global X will add to Mirae’s portfolio of global ETF businesses.

It currently owns Horizons in Canada, BetaShares in Australia, and TigerETF in Asia. Mirae Asset Global Investments opened its Vietnam office in 2006. The office has provided equity and fixed income advisory services for MAGI funds with Vietnamese exposure.

Its venture capital arm Mirae Asset Venture Investment has participated in an undisclosed series C funding round in Vietnam-based mobile content platform Appota, along with Korea Investment Partners (KIP).