April 25, 2024
Deals
LIG Investment bids to buy Hi Investment
[THE INVESTOR] LIG Investment & Securities has submitted a letter of intent to purchase its smaller peer Hi Investment & Securities on Sept. 9.
LIG is the only firm that has been confirmed to participate in the bid to takeover the midsized securities firm so far.
Failing to attract sufficient potential buyers, Hi Investment decided to leave the door open indefinitely.
Except LIG Investment, no companies have expressed interest in the deal in the past one month until Sept. 9, the deadline for a letter of intent submission, according to an official at the deal’s manager.
Discouraged by the lukewarm market response, the company has “extended the due date indefinitely,” he said.
There has been speculation Korea Investment & Securities and Japanese private equity firm Orix could file bids to buy Hi. But none of them submitted bids.
“We didn’t give much thought to the deal as it’s not that attractive,” Korea Investment co-Vice Chairman Kim Nam-goo said on Sept. 8.
In May, Hi Investment’s parent Hyundai Heavy Industries included its plan to sell the brokerage unit as part of self-rescue measures submitted to its main creditor KEB Hana Bank, as it grapples with a liquidity shortage due to mounting losses amid a protracted downturn in the shipbuilding industry.
Officials at investment bank firms value Hi Investment at around 500 billion won (US$455.18 million) to 600 billion won.
By Park Han-na (hnpark@heraldcorp.com)
LIG is the only firm that has been confirmed to participate in the bid to takeover the midsized securities firm so far.
Failing to attract sufficient potential buyers, Hi Investment decided to leave the door open indefinitely.
Except LIG Investment, no companies have expressed interest in the deal in the past one month until Sept. 9, the deadline for a letter of intent submission, according to an official at the deal’s manager.
Discouraged by the lukewarm market response, the company has “extended the due date indefinitely,” he said.
There has been speculation Korea Investment & Securities and Japanese private equity firm Orix could file bids to buy Hi. But none of them submitted bids.
“We didn’t give much thought to the deal as it’s not that attractive,” Korea Investment co-Vice Chairman Kim Nam-goo said on Sept. 8.
In May, Hi Investment’s parent Hyundai Heavy Industries included its plan to sell the brokerage unit as part of self-rescue measures submitted to its main creditor KEB Hana Bank, as it grapples with a liquidity shortage due to mounting losses amid a protracted downturn in the shipbuilding industry.
Officials at investment bank firms value Hi Investment at around 500 billion won (US$455.18 million) to 600 billion won.
By Park Han-na (hnpark@heraldcorp.com)
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