The latest mergers, acquisitions and other corporate actions in the wealth management sector.

DL Holdings Group, Youngtimers
Hong Kong-listed DL Holdings Group is to become the largest institutional shareholder in Youngtimers AG, aka YTME, a Swiss investment firm that specialises in investing in Asia-Pacific. 

Under the terms of the agreement, announced yesterday, DL Holdings plans to subscribe for newly-issued shares of YTME for up to $12 million. The stake accounts for about 7.76 per cent of YTME’s enlarged share capital. The direct subscription portion of this investment will be settled through a cash-and-share consideration structure.

DL Holdings said the investment stake is a significant move in its global expansion. It is already present in Hong Kong, Shanghai, Silicon Valley, Singapore, and Tokyo, and now it is extending its footprint to Zurich in Switzerland and Sydney in Australia.

The move is an example of Asia-based financial institutions buying into European investment, banking and other financial businesses. 

YTME will grant DL Holdings a warrant giving the group the right to subscribe for additional shares within six months after completion, for a total consideration of $2 million. If the warrant is fully exercised, DL Holdings’ will be able to raise its YTME equity interest to 9.17 per cent. All YTME shares subscribed by DL Holdings will be subject to a two-year lock-up period from the date of issuance and placement, during which the company shall not offer, pledge, or sell such shares without YTME’s consent.

Listed in Switzerland, YTME has undertaken its own business acquisitions in the asset management space. For example, in November last year it bought C Capital, an asset management platform, managing approximately $900 million in assets, co-founded by Hong Kong entrepreneur Adrian Cheng. 

Following the acquisition, YTME now operates under the C Capital brand.

DL Holdings’ subsidiaries include DL Securities, DL Capital, Seazon Pacific, and ONE Advisory.