KB Financial Group has emerged winner of the hotly contested takeover battle for Hyundai Securities, the sale’s manager announced Thursday.
“KB Financial has been chosen as the preferred bidder,” accounting firm EY Han Young said in a statement.
KB may have offered close to 1 trillion won for a combined 22.56 percent stake in the brokerage house, valued at around 340 billion won ($273.4 million) based on Thursday’s stock price of 6,875 won apiece.
Hyundai Group is selling its stake -- owned by cash-strapped Hyundai Merchant Marine and the group’s owner family.
KB Financial Group. Yonhap
KB Financial’s contenders in the final round of bidding were Korea Investment Holdings and Hong Kong-based private equity firm Actis.
KB, which derives about 63 percent of its profits from KB Kookmin Bank, has been seeking to strengthen its brokerage business through M&As as lending margins plunge. Last year, it lost out to Mirae Asset Financial in the takeover race for the industry’s second-ranked KDB Daewoo Securities. KB owns its own brokerage, which has only a miniscule presence in the industry.
Hyundai Securities is ranked fourth by assets -- of around 3 trillion won.
The stake sale is part of Hyundai Group’s plan to salvage its flagship Hyundai Merchant Marine, which recently entered into a debt settlement agreement with creditors. The group has promised its creditors to complete the deal by June.
By Lee Sun-young
(
milaya@heraldcorp.com)