United Overseas Bank, the Singapore-headquartered financial services firm, has terminated several of its joint venture partnerships with Malaysia's OSK/RHB Group following the merger of OSK's investment banking arm into RHB.

Under the terms of the agreement, UOB Asset Management will buy all the shares owned by RHB Investment Bank in UOB-OSK Asset Management for MYR26.2 million ($8 million). UOBAM will then sell its shares in OSK-UOB Islamic Fund Management to OSK-UOB Investment Management for MYR3 million. Finally, UOB Malaysia will sell its shares in OSK-UOB IM to RHB Investment Bank for MYR43 million.

All three transactions will be settled in cash and take into the consideration the valuations in recent sales of fund management companies in Malaysia. They are not expected to have any material impact on earnings of UOB in the current financial year.

As of 31 December 2012, the net tangible asset of United Overseas Bank-OSK AM, OSK-UOB IF and OSK-UOB IM were MYR13.39 per share, MYR0.78 per share and MYR7.63 per share, respectively. Upon completion and regulatory approval, UOB-OSK AM will become the wholly-owned subsidiary of UOBAM and the UOB Group will no longer have any interest in the Islamic fund and investment management businesses of OSK-UOB.