/Not for distribution in the US/
TSX/NYSE/PSE:MFC SEHK:945
HONG KONG, Nov. 24 /PRNewswire-Asia/ -- Manulife Asset Management (Hong Kong) Ltd. (MAMHK), a subsidiary of Manulife International Holdings Limited, today has signed an agreement with Fortis Bank SA/NV (Note 1) (Fortis) to purchase its 49 per cent ownership in ABN AMRO TEDA Fund Management Co., Ltd. (AATEDA) for cash purchase consideration of euro 105 million (HK$1.2 billion). The acquisition is expected to be accretive to Manulife Financial earnings in the first year and have negligible impact to capital levels. The agreement is subject to regulatory approval and is expected to close in the first quarter of 2010.
The new entity, which will be called Manulife TEDA Fund Management Company Ltd., gives the company a fast-track entry into the China asset management industry, forecast to become one of the largest in the world in the coming decade.
"I am very pleased to announce Manulife's ongoing investment in China with this important acquisition," stated Robert Cook, President and Chief Executive Officer of Manulife International Holdings Limited. "We are taking advantage of a rare opportunity to propel our business forward and accelerate its growth versus a start-up development. When coupled with our extensive experience in China through our joint venture Manulife-Sinochem, we are extremely well positioned for success."
Marc Sterling, Executive Vice President, Asia Regional Operations, Manulife Financial added, "We are looking forward to working with our new partner, TEDA. TEDA is an outstanding organization and we are proud to be associated with them. We are also impressed by the fundamental strengths of the company and equally excited to work with the fine management team in the future. At this time, we will begin working with the relevant Chinese regulatory authorities to ensure we have a smooth and positive transition."
While Manulife TEDA Fund Management Company Ltd. plans to maintain and grow its existing platform of high quality asset management products, over time, it also plans to seek regulatory approval for expanding its lines of business as and when permitted by CSRC (China Securities and Regulatory Commission) and other relevant bodies.
"Manulife has established an outstanding reputation for its comprehensive service, innovative product development, and an extensive professional distribution network and that is why we selected Manulife as our strategic partner," stated Mr. Liu Huiwen, President of TEDA. "We see this new partnership as combining the global perspective with local smarts."
"We are excited about the opportunity to extend the reach of our global asset management business into China. Our new joint venture should lead to opportunities to offer the asset management capabilities within Manulife TEDA Fund Management Company Ltd. to our global clients, to offer our global asset management capabilities into China, and to significantly strengthen our Asian investment management capabilities", noted J-F Courville, President and CEO, MFC Global Investment Management. With this transaction, we are moving towards becoming one of the leading pan-Asian wealth managers in the financial services industry."
With the completion of this deal, Manulife Financial will have asset management companies in nine of ten of its operating territories across Asia Division and will be strategically better positioned to serve both the wealth management and protection needs of consumers in Asia. MFC Global Investment Management currently manages over US $100 billion in assets for institutional and retail clients worldwide including US $13.5 billion under management for clients across Asia.
Note 1: Now operating under the BNP Paribas Fortis brand.
About Manulife Asset Management (Hong Kong) Limited
Manulife Asset Management (Hong Kong) Limited ("MAMHK") is a wholly-owned subsidiary of Manulife Financial Corporation ("MFC") which conducts its global institutional asset management under the brand name of MFC Global Investment Management ("MFC Global"). MFC Global represents more than 100 years of experience in managing portfolios for major clients around the world. With more than 300 investment professionals worldwide, more than 80 of whom are based in 10 markets throughout Asia, the company manages US$277 billion in assets globally (as at September 30, 2009). MAMHK is licensed with the Securities and Futures Commission to carry out asset management activities in Hong Kong.
About MFC Global Investment Management
MFC Global Investment Management(R) is the asset management division of Manulife Financial. MFC Global Investment Management's diversified group of companies provides comprehensive asset management solutions for institutional investors, investment funds and individuals in key markets around the world. This investment expertise extends across a full range of asset classes including equity, fixed income and alternative investments such as oil and gas, real estate, timber, farmland, as well as asset allocation strategies.
MFC Global Investment Management has investment offices in the United States, Canada, the United Kingdom, Japan, Hong Kong, and throughout Asia. Additional information about MFC Global Investment Management may be found at http://www.mfcglobal.com .
About Tianjin TEDA Investment Holding Company Ltd.
Tianjin TEDA Investment Holding Co., Ltd (TEDA) is mainly engaged in resource development and asset integration. As one of the most influential investment holding companies in China, TEDA has established its reputation through diversified operations in industries such as finance, infrastructure, public utilities, real estate, manufacturing, environmental protection, and hotels. With China's focus on developing a sustainable, growing economy, TEDA is committed to being a respected investment holding company serving society by its successful growth.
About Manulife Financial
Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 22 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$437 billion (US$407 billion) as at September 30, 2009.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at http://www.manulife.com .
Caution Regarding Forward-Looking Statements
This document contains forward-looking statements within the meaning of the "safe harbour" provisions of Canadian provincial securities laws and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to the anticipated benefits of the proposed purchase and its anticipated accretive impact on MFC's earnings. These forward-looking statements relate to MFC's expectations and estimates, can generally be identified by the use of word "expect", and include statements concerning possible or assumed future results. Although MFC believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. In particular, in making the statement regarding the expected accretive impact of the purchase on MFC's earnings, we have assumed that the market value of the assets under management and expense levels for the business of ABN AMRO TEDA Fund Management Co. Ltd. (the "TEDA Business") do not change materially from current levels and that the information provided to us regarding the TEDA Business was accurate. Important factors that could cause actual results to differ materially from expectations include but are not limited to: changes in the market value of the assets under management or expense levels of the TEDA Business, the accuracy of information received regarding the TEDA Business, business and economic conditions in the markets in which the TEDA Business operates; changes in laws and regulations; legal and regulatory proceedings; level of competition and consolidation; the ability to retain key executives; and the ability to execute strategic plans and changes to strategic plans. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found under "Risk Factors" in MFC's most recent annual information form, under "Risk Management" and "Critical Accounting and Actuarial Policies" in the management's discussion and analysis in MFC's most recent annual and interim reports, in the "Risk Management" note to the consolidated financial statements in MFC's most recent annual and interim reports, and elsewhere in MFC's filings with Canadian and U.S. securities regulators. MFC does not undertake to update any forward-looking statement that is contained in this document except as required by law.
Media Contacts:
In Hong Kong:
Lily Chan
Tel: +852-2202-1284
Email: lily_wk_chan@manulife.com
In Asia:
Juliana Gittler
Tel: +852-2202-1501
Email: juliana_gittler@manulife.com
In China:
Lillian Li
Tel: +86-21-5359-4770 x8624
Email: lillian_li@manulife-sinochem.com
Corporate:
Laurie Lupton
Tel: +416-852-7792
Email: laurie_lupton@manulife.com
Investments (MFC GIM):
Catherine Battershill
Tel: +44-20-7256 3500
Email: catherine_battershill@mfcglobal.com
In Taiwan
Suzanne Lee
Tel: +886-2-2757-5888
Email: suzanne_lee@manulife.com
SOURCE Manulife Asset Management (Hong Kong) Limited