According to the terms of the agreement, BNP Paribas Asset Management acquires 50% minus 1 share of the existing company to Shinhan Financial Group for a price of KRW 23.75 billion (EUR 19.8 million). Depending on the revenues generated by the joint venture company through Shinhan networks during the next 3 years, additional payments will be given to Shinhan of up to KRW 11.25 billion (EUR 9.4 million).
BNP Paribas Asset Management will provide expertise in investment management, risk management and marketing know-how, while Shinhan will provide its Group networks such as Bank and Securities for the distribution and sales of the joint venture fund products.
The newly created Shinhan-BNP Paribas Investment Trust Management Company's objectives are to establish its reputation through superior performance , quality and diversification of products, with the aim to be among the top 10 ITMCs by the end of this year and in the top 5 by 2005.
The establishment of this joint venture in the asset management business will complement the on-going establishment of other joint ventures (in consumer finance with Cetelem and bancassurance business with Cardif) between Shinhan Financial Group and BNP Paribas.
About BNP Paribas
BNP Paribas is a powerful and efficient financial services group, with solid roots in Europe, leading positions in Asia and an active presence in the United States. It is the first bank in terms of net income and market capitalisation in the Euro zone. BNP Paribas has one of the largest international banking networks, present in 85 countries with 85,000 employees. The group has three core businesses: Corporate and Investment Banking; Private Banking, Asset Management, Securities Services and Insurance; Retail Banking.
BNP Paribas Asset Management is one of the leading asset management companies in Europe with EUR 161 billion assets under management as of June, 2002.
Shinhan Group (including Shinhan Investment Trust Management, Shinhan Bank, GoodMorning Shinhan Securities, Shinhan Capital, e-Shinhan, Shinhan Card, Shinhan Credit Information and Jeju Bank) is one of the leading financial groups in Korea, offering a broad range of products from retail banking to credit cards, investment trust and middle-market and corporate banking services.