Singaporean lender Oversea-Chinese Banking Corp (OCBC) said it raised its stake in Maxwealth Fund Management for a total cash consideration of 61.45 million yuan (S$12.6 million).
OCBC's subsidiary Lion Global Investors acquired 37 million shares in China-based Maxwealth Fund, raising OCBC's interest in the company to 28.51 percent from 10 percent earlier, the company said in a regulatory filing on Wednesday.
With this acquisition, Maxwealth has become an associated company of OCBC.
The remaining 71.49 percent interest in Maxwealth is held by Bank of Ningbo, which is also an associated company of OCBC.
The purchase consideration was based on Maxwealth's audited net book value of 1.66 yuan per share as at December 31, 2016 and was funded by internal resources.
The transaction is not expected to have any material impact on the net tangible assets or earnings per share of the OCBC Group for the financial year ending December 31.