[THE INVESTOR] Mirae Asset Global Investment, the asset management arm of Mirae Asset Financial Group, will inject US$220 million in its subsidiary to acquire the US exchange-traded funds issuer Global X, according to industry sources on March 21.
At the board meeting last week, Mirae Asset Global Investment decided to participate in a capital increase of US$220 million for Mirae Asset Global ETF Holdings, its wholly owned subsidiary in Hong Kong. The purchase deadline is set for April 30.
Mirae Asset Global ETF Holdings, which oversees Mirae’s global ETF businesses, will use the fresh capital to cover its acquisition of Global X, which is estimated to be around US$500 million. The rest of the amount is expected to be raised through investments by Mirae’s affiliates.
In February, Mirae Asset Global Investment announced it will take over Global X, the New York-based ETF provider which manages about US$10 billion in assets as of February. Once the deal is finalized in the third quarter as planned, Mirae Asset’s total ETF assets will increase from US$20 billion to US$ 30 billion to become the 18th largest globally.
The latest deal gives a US footprint for Mirae Asset, which has been pushing for global expansion. It already owns a slew of ETF businesses, including Horizons in Canada, Beta Shares in Australia and Tiger ETF in Asia.
By Ahn Sung-mi (firstname.lastname@example.org)