Slow Financial M&As
The disposal of major securities companies such as Hyundai Securities and KDB Daewoo Securities, as well as that of minor firms, are taking more time than expected, despite the government’s measures for the promotion of M&A in the industry.
The bidding for Hyundai Securities has been postponed from Oct. 27 to January next year. The reason for the delay is a higher selling price. However, it is currently said that the Hyundai Group might withdraw the disposal plan with as much as 2.82 trillion won (US$2.67 billion) out of the 3.3 trillion won (US$3.1 billion) procured for its self-help plan.
No specific disposal schedule has come out for KDB Daewoo Securities, either. Market insiders’ consensus is that more time will be taken until the disposal of the major securities company takes concrete shape.
Things are even more difficult for smaller firms. Although IM Investment & Securities ended up in the hands of Meritz, e*Trade Securities, Leading Investment & Securities, and Taurus Investment & Securities have yet to find new owners. Apple Investment & Securities and BNG Investment & Securities had to liquidate themselves after failing to do so.