Following entry into exclusive negotiations on 4 December 2012, GCS Capital announced the signing of a sale and purchase agreement to acquire Dexia Asset Management (“DAM”) from Brussels-based banking group Dexia SA.
Following an extended period of uncertainty in which the DAM business has shown great resilience, GCS Capital is committed to providing continuity and stability to DAM’s existing staff and clients. As a long term strategic investor backed by premier institutions from the fastest growing regions in the world, GCS Capital’s strategy is to maintain Europe as DAM’s centre of excellence, build upon the strengths of the existing platform by broadening its distribution reach to new markets (including Greater China and the Middle East), and enhance its product offerings to clients. The strong client centric focus, for which DAM is renowned, will continue and best in class service levels will remain a priority.
In addition to this acquisition, GCS Capital has signed a strategic partnership agreement with Industrial and Commercial Bank of China (“ICBC”), China’s largest banking group. Through this arrangement, DAM will gain greater insights into emerging markets, access to both market-leading investment products and the distribution network of a premier financial services institution in Greater China. As a result of the cooperation, ICBC will confer DAM with preferred asset management partner status and DAM products will become available to investors in Asian markets through ICBC’s branch network. Furthermore, GCS Capital also sees a significant opportunity to offer Asia-focussed solutions to DAM’s existing European and Australian investors. To support the establishment of DAM’s onshore business in China, ICBC will also provide GCS Capital and DAM with assistance in establishing a presence and capitalising on the opportunities in this rapidly growing market. The development of these east/west and west/east capital flows will be facilitated through new regional hubs in Hong Kong and Doha, which will coordinate activities. Additional discussions with other major financial institutions are well advanced and likely to further bolster DAM’s distribution capability across emerging markets.
Dr. Huan Guocang, CEO of GCS Capital commented, “GCS Capital is delighted to partner with DAM’s experienced management team and together with our strategic partner, ICBC, broaden the franchise across emerging markets to capture capital flows. Asian investors are increasingly interested in genuine European expertise to identify value opportunities, while in China the financial services industry is both expanding and evolving - this presents an attractive set of circumstances where we see considerable opportunity. ”
Mike Powell, Senior Partner of GCS Capital commented, “DAM is an award winning European-based asset management platform with a multi-regional presence. GCS Capital’s clear growth strategy is to leverage the combined strengths of the existing platform and our strategic partners to broaden distribution and enhance product offerings across additional geographic regions. We share the key values of robust governance and responsible entrepreneurship, which form the soundest foundations for success.”
The acquisition is subject to the fulfilment of certain conditions including the obtaining of regulatory approvals. HSBC Bank is acting as sole financial advisor to GCS Capital in connection with the proposed transaction.