UBS Global Asset Management is buying a controlling stake in Korea’s largest asset management company, Daehan Investment Management Trust Co.

The Swiss financial giant announced that it plans to enter into a stock purchase agreement with Daehan Investment & Securities Co. to acquire 51% of DIMCO. UBS Global Asset Management will pay US$158 million for its stake immediately followed by a maximum US$31.6 million earn-out over the next three years.

Under the joint venture, DIMCO will be known as UBS Hana Asset Management Company Ltd. internationally and as Hana UBS Asset Management in Korea. Since UBS will hold a 51% stake in the company, it will fully consolidate UBS Hana Asset Management from the date of acquisition, which is expected to close later in 2006.

The transaction, which remains subject to regulatory approval, is expected to be completed in the third quarter.

At end June, DIMCO managed more than US$20.5 billion of assets and is the clear market leader in the Korean asset management market. It is wholly owned by DI&S, which itself is wholly owned by Hana Financial Group.