Great Eastern Holdings arm acquires 70% share in Pacific Mutual Fund Berhad

This translates to 3,500,000 ordinary shares worth RM 33 million.

In a release, Great Eastern Holdings Limited announced that its subsidiary, Lion Global Investors Limited has entered into a conditional sale and purchase agreement for the purchase of 3,500,000 ordinary shares in the share capital of Pacific Mutual Fund Berhad, representing 70% of the issued and paid-up share capital of PMFB for a cash consideration of approximately RM 33 million from OCBC Capital Sdn Bhd.

The acquisition will provide LGI with a direct foothold in the Malaysia fund management industry through an established locally-licensed entity. The Consideration was based on the cost at which OCSB had acquired its 70% equity stake in PMFB.

The audited net tangible asset value of PMFB as at 31 December 2011 was approximately RM 24 million. The Consideration will be funded in cash from internal sources of funds. The Transaction is not expected to have a material financial impact on the GEH Group. Upon completion of the Transaction, PMFB will become a subsidiary of GEH.