This article first appeared in The Edge Malaysia Weekly on December 15, 2025 - December 21, 2025

AHAM Asset Management Bhd’s Japanese shareholder, Amova Asset Management Co Ltd, which holds a 20% stake, plans to buy out the other shareholders in a deal that could value the company at between RM2.6 billion and RM3 billion, sources say.

“It’s likely to be at the upper end of the range,” a source tells The Edge.

The parties are ironing out the final details and expect to ink an agreement by year’s end, according to another source.

The deal will see Amova — formerly known as Nikko Asset Management Co Ltd — owning 100% of AHAM. The transaction would need the approval of the Securities Commission Malaysia (SC).

AHAM and its biggest shareholder, private-equity firm CVC Capital Partners (CVC), declined comment when contacted by The Edge, and Amova could not immediately be reached.

AHAM is the country’s second-largest asset management firm after Public Mutual Bhd, with just over RM100 billion in assets under management (AUM) — close to Public Mutual’s RM102 billion as at end-2024.

CVC holds a 68.35% stake in AHAM via Starlight Asset Sdn Bhd; Amova has 20% interest; and the Armed Forces Fund Board (LTAT), 7%.

AHAM’s key management personnel, including founder and managing director Datuk Teng Chee Wai, 59, hold the remaining 4.65% stake via Starlight Management Co (Jersey) Ltd.

At the expected price of between RM2.6 billion and RM3 billion, AHAM’s valuation in the upcoming deal is higher than when its shares were last transacted in 2022. In July that year, CVC bought Affin Bank Bhd’s (KL:AFFIN) 63% stake in AHAM — then known as Affin Hwang Asset Management Bhd — for RM1.42 billion, and another 5.35% from its management (including Teng) for RM120 million.

That deal valued AHAM at RM2.25 billion, which translated into a price-to-AUM of 3.08% — above the average of 2.64% for past merger and acquisition transactions involving asset management companies since 2014. At the time, Affin Hwang Asset Management’s AUM was around RM81 billion.

On a price-earnings basis, that deal was valued at a multiple of 19.7 times versus the previous average of 15.2 times.

AHAM wholly owns Islamic investment management firm AIIMAN Asset Management Sdn Bhd. It also has a 51% stake in private-equity firm Bintang Capital Partners and a 75% stake in AccelVantage Academy Sdn Bhd, a training and support centre for financial entrepreneurs in the field of wealth management.

Amova, which adopted its new name in September as part of a rebranding exercise, has been a shareholder of AHAM and its predecessor entities since 2011.

Malaysia has only two fully Japanese-owned asset management firms in Malaysia — Nomura Asset Management Malaysia Sdn Bhd and Nomura Islamic Asset Management Sdn Bhd, both subsidiaries of Nomura Asset Management Co Ltd. As at end-2024, they had a combined AUM of RM36.6 billion.

Amova’s acquisition of the rest of AHAM’s shares would mark the exit of CVC from the company after roughly 3½ years.

It was widely known in the industry that CVC was looking for a buyer for its 68.35% stake. The Edge reported in August — citing people close to the matter — that the CVC stake was up for sale, with at least one suitor identified.

What is interesting is that Teng, too, will be selling his shares. It is unclear whether Teng, who founded AHAM 24 years ago, will stay on as an adviser.

For the year ended Dec 31, 2024 (FY2024), AHAM reported a slightly higher profit after zakat and tax (PAZT) of RM115.4 million compared with RM114.07 in FY2023. This was on the back of a 28.4% improvement in revenue to RM484.34 million, from RM377.33 million.

In FY2022, PAZT stood at RM123.1 million and revenue was at RM401.08 million.

Malaysia is seeing a rise in mergers and acquisitions (M&A) involving asset management companies of late.

Just last month, Affin Bank announced plans to acquire Pheim Asset Management Sdn Bhd, a small privately managed firm with AUM of RM876 million. The lender entered into a conditional share purchase agreement to buy 100% of Pheim for RM50 million cash in its bid to become a universal bank.

The deal translates into a price-to-AUM of 5.7%, a price-to-book value of two times and a price-to-earnings ratio of about 30 times. The transaction, subject to the approval of Bank Negara Malaysia and SC, is expected to be completed by 1Q2026.

Market sources say Pheim founder and executive chairman Tan Chong Koay, 75, is expected to stay on as an adviser for 18 months after the sale, after which it remains to be seen whether he will opt to retire.

The Pheim group reported a profit after tax of RM1.58 million last year on revenue of RM7.9 million. It had RM25.61 million in net assets and RM21.6 million in fixed deposits, cash and bank balances.

In another upcoming deal, The Edge reported last month — citing sources — that MBSB Bhd (KL:MBSB) was in talks with one or two investors for its asset management firm, MIDF Amanah Asset Management Bhd, after its planned divestment to Australia’s Salaam group hit a snag. MBSB recently told analysts that it had found a buyer, with the sale likely to be announced by end-1Q2026.

Loss-making MIDF Amanah is a relatively small player, with AUM of under RM1 billion.

The Malaysian fund management industry’s AUM has been on growth mode — since 2020, it has risen each year except 2022. According to SC’s latest annual report, total AUM hit a record RM1.07 trillion in 2024, up 9.6% from RM975.5 billion in 2023, driven by the strong performance of global equity markets.

AUM stood at RM906.5 billion in 2022, RM951.1 billion in 2021 and RM905.5 billion in 2020. As at Sept 30, there were 54 fund managers in relation to wholesale funds. 

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