GCS Capital in talks to buy Dexia asset management unit
GCS Capital, a Hong Kong-based private equity firm, is in exclusive talks to buy Dexia’s asset management arm. It is estimated that the deal could be worth EUR500 million, lower than the EUR750 million Dexia was reportedly seeking when it put the asset on the block in June.
The Belgo-French financial group confirmed the negotiations, describing GCS as an "investor supported by institutions with strong financial resources and strategic capabilities." Earlier reports suggested that Hony Capital might support GCS' bid.
Should the transaction go through, the private equity firm is expected to focus on targeted development in the world's fastest-growing regions. However, it would retain the current core centers in Brussels, Paris, Luxembourg and Sydney.
"Dexia Asset Management presents a rare opportunity to acquire a well-capitalized, standalone asset management business with the potential to transition into a global franchise," said GCS CEO Guocang Huan in a statement.
Huan was an investment banker with Citigroup and HSBC before founding Primus Pacific Partners, another financial services-focused private equity firm, in 2009. Primus unsuccessfully bid for AIG's Taiwan life insurance unit, Nan Shan Life Insurance.
Huan left his position as a non-executive director at New China Life Insurance in March, citing a change in his work arrangements.
The current sale is part of a wider divestment process launched by Dexia following its rescue last October by the Belgian, French and Luxembourg governments. The asset management arm of the twice-bailed-out European bank currently holds close to EUR80 billion for clients across 25 countries.
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