DGB FinancialGroup Co. LTD. is looking to acquire a small South Korean assetmanager as part of efforts to evolve into a complex financial company bystrengthening itsnonbanking businesses.
The banking group on July 12 signed a memorandum ofunderstanding with LS Group regarding its intent to pursue a takeover of LSGroup's asset management unit, LS Asset, DGB Financial said in an emailedrelease the same day.
DGB Financial, which currently lacks an asset managementunit, will begin due diligence on LS Asset soon and is looking to finalize aformal agreement to complete the acquisition by the end of 2016.
As of March 31, LS Asset had about US$5.77 billion, or 6.6trillion won, in assets under management. The company's net income for 2015totaled 2.1 billion won.
DGB Financial plans to grow the assets under management ofLS Asset to more than 10 trillion won by 2020 through collaborations with itsother units, such as selling the asset manager's fund products at the group'sbanking unit, Daegu BankLtd., as well as enlarging LS Asset's alternative investmentportfolio.
As of July 13, US$1was equivalent to 1,144.44 SouthKorean won.