Goldman Offers Macquarie a Deal it Can't Refuse for S. Korean Asset Manager

Goldman Sachs Asset Management [GSAM] has agreed to acquire 100% of Macquarie-IMM Investment Management, a South Korean asset management firm 65% owned by Macquarie, with around 10 trillion won ($10.8b) in assets under management. Financial terms were not disclosed, but Reuters estimates the transaction to be valued at 120b ($129m) - 180b won ($194m), based on deals by other investment banks in South Korea in 2006. A Macquarie spokesman commented: "We were approached by Goldman ... The offer was quite attractive ... so we decided to accept the offer." Macquarie is the largest foreign i-bank in S. Korea and has another asset management unit run as a JV, the largest foreign asset management operation in the country. The head of GSAM Int'l called the acquisition a "significant milestone" in Korea, "a growing financial hub with significant market potential." Shares of Goldman Sachs gained 2.6% to $227.34 on Friday, setting a new all-time high. Macquarie's ADRs trading on the pink sheets gained 1% to $75.50, also a new all-time high.

Sources: Reuters
Commentary: KKR and Goldman Capital Take Out Harman International Industries For $8 Billion • Blackstone Files For $4 Billion IPO, Reveals Untold Secrets • Goldman Sachs: More Transparency Would Boost Share Value
Stocks/ETFs to watch: Goldman Sachs (GS), Macquarie Bank Limited (MQBKY.PK). Competitors: JP Morgan (JPM), Lehman Brothers (LEH), Merrill Lynch (MER), Morgan Stanley (MS). ETFs: iShares Dow Jones US Broker-Dealers (IAI), KBW Capital Markets ETF (KCE), Financial Select Sector SPDR (XLF)
Conference call transcripts: Goldman Sachs F1Q07 (Qtr End 2/23/07)

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Comments

[CapitalFools:]

Interesting development - it looks like Goldman sees a lot more wealth creation in South Korea and is willing to spend to acquire assets from a proven wealth management firm.

2008 Aug 14 06:53 PM