Sell-off of Hyundai Securities

The KB Financial Group became the preferred bidder in the bidding for Hyundai Securities on March 31.
The KB Financial Group became the preferred bidder in the bidding for Hyundai Securities on March 31.

 

On March 31, the KB Financial Group became the preferred bidder in the bidding for Hyundai Securities by beating Korea Investment Holdings and the AKTIS Group, which is a Hong Kong-based private equity fund (PEF). The equity to be sold accounts for 22.56%, which is divided into a 22.43 percentage point portion owned by Hyundai Merchant Marine and the rest owned by the other shareholders.

The KB Financial Group is planning to sign a stock purchase agreement with Hyundai Merchant Marine and then complete the acquisition process in May or June this year after the financial authorities’ eligibility screening procedure. The KB Financial Group’s bidding price is estimated at one trillion won or so, which is about three times the combined market price of those shares.

The KB Financial Group can have a giant securities company with a capital of 3.8393 trillion won as its subsidiary after a merger between KB Investment & Securities and Hyundai Securities. Then, it can rank third in size in the South Korean securities industry.

KB has longed for strengthening its synergy with banking by taking over a large stock firm. Experts point out that KB now has an opportunity to diversify its banking-centered portfolio. 

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution