Tyndall Asset Management is conducting its business as usual following a decision by its Tokyo-based parent to cancel its initial public offering (IPO), estimated at about US$2 billion.
Nikko Asset Management said its board of directors had decided on Friday to cancel the IPO and suspend share sales in Japan and offshore.
Nikko, founded more than 50 years ago, said market conditions had prompted the decision to halt the offering for now and its 91 per cent owner, Sumitomo Mitsui Trust, cited growing concerns over Europe’s sovereign debt crisis in the decision to scrap its plans to sell 30 per cent of Nikko.
Meanwhile, Tyndall managing director Craig Hobart said the Australian-based company was unaffected by Nikko’s announcement.
“Nikko Asset Management remains committed to supporting Tyndall as an independent fund manager in Australia, so there is no change in the way we’re operating,” Hobart told InvestorDaily.
Asked whether he was surprised by the decision, he said: “We were surprised by the continued deterioration in markets that resulted in it being cancelled. That was a surprise.”
He said Tyndall had added about 20 people to its ranks since Nikko completed its acquisition on 1 March of the Australian funds management company from Suncorp.
“We had to hire key staff,” Hobart said, adding the team had expanded to about 65 people.
Legal, risk and compliance personnel, as well as marketing people and investment writers were among new hires.
“We’ve also added four investment personnel to the front of the operation — two credit analysts, an additional portfolio manager and an additional equity analyst,” he said, adding Nikko had supported the staff expansion as well Tyndall’s move to new offices in Sydney’s business district.
As of 30 September 2011, Tyndall had $22 billion in funds under management.
Nikko bought Tyndall about nine months ago from Suncorp for $129 million in a move to expand its funds-management footprint throughout the Asia-Pacific region and tap Australia’s $1.4 trillion superannuation market. Nearly half of Nikko’s US$150 billion in funds under management is outside Japan.
“The company remains committed to the belief that, as a publicly listed asset management company, it can contribute to the development of the Asian asset management industry and help millions of Asian investors grow their wealth,” Nikko said in a statement.
“However, as there is no need for the company to raise cash through an immediate listing, the company has decided that it is appropriate to suspend the listing during this time of market volatility. As such, the company will seek to resume its listing plans when market conditions are more stable.”
