Shinhan Financial Group Fully Subsidiarizes Shinhan BNPP Asset Management

Expansion of Capital Market Capabilities through Full Subsidiary Incorporation of Shinhan BNPP Asset Management
Flexible Development and Continuation of 20-Year Strategic Partnership with BNPP A.M
Strengthening Stable Supply of Global Products and Services

[Asia Economy Reporter Kangwook Cho] Shinhan Financial Group is making Shinhan BNP Paribas Asset Management a wholly owned subsidiary.

On the 15th, Shinhan Financial announced that it will acquire 35% of Shinhan BNPP Asset Management shares held by BNP Paribas Asset Management (BNPP A.M).

Shinhan BNPP Asset Management plans to hold an extraordinary general meeting of shareholders this afternoon to resolve details related to the incorporation as a subsidiary, including the company name.

Earlier, on the 30th of last month, both companies held board meetings respectively and resolved to sell and purchase 35% of Shinhan BNPP Asset Management shares held by BNPP A.M, signing a stock purchase agreement (SPA).

The two companies agreed to reorganize the asset management company centered on Shinhan Financial to meet the expanding volatility in domestic and international financial markets and the diversifying needs of domestic investors. Through this transaction, Shinhan BNPP Asset Management will become a 100% wholly owned subsidiary of Shinhan Financial.

Shinhan Financial will establish an organizational system capable of responding more quickly and flexibly to changes in the domestic market through the restructuring of the asset management division. It is also expected to secure various product sourcing capabilities that can satisfy the diversifying needs of domestic investors, such as global alternative investments.

Additionally, Shinhan Financial plans to strengthen a stable supply system for global products and services, which BNPP A.M excels in, and to continuously develop the strategic partnership with BNP Paribas Group. Currently, BNP Paribas Group is a strategic investor holding 3.5% of Shinhan Financial Group shares.

A Shinhan Financial official said, "The share transaction between the two companies is a strategic decision to expand the market leadership of the asset management division within the group," adding, "It will be an opportunity to flexibly develop and inherit the strategic partnership between Shinhan Financial and BNP Paribas Group, which has continued for 20 years, according to market changes."

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