[THE INVESTOR] Local private equity firm J&W Partners has received the green light from Korea’s Securities and Futures Commission to purchase a 10.4 percent stake in SK Securities for 51.5 billion won (US$45.47 million), according to regulators on July 20.
The SFC, which is under Korea’s top financial regulator Financial Services Commission, approved J&W Partners’ eligibility as the majority shareholder of the brokerage unit of SK Group.
SK Securities' signage. |
The deal is pending final approval at the FSC’s regular meeting slated for July 25, but industry watchers project J&W Partners will easily attain the nod to pass all clearance for the acquisition.
Since last June, SK has been looking for a new owner for its brokerage arm that has been under the conglomerate for 26 years, to be compliant with the antitrust law that bans holding firms from owning a stake in financial companies. The rest of SK Securities, about 80 to 90 percent, is held by minority shareholders.
Last year, a consortium led by Cape Investment & Securities was picked as a preferred bidder for SK Securities for 60.8 billion won, but the deal was scrapped for failing to get regulator’s clearance.
J&W Partners clinched the 51.5 billion deal in March, about 15 percent under Cape Investment & Securities’ offer, due to the performance decline of the brokerage house this year. SK Securities’ operating profit came to 4.8 billion won in the first quarter this year, dropping 62.7 percent on-year.
J&W Partners said it will secure the current jobs of employees for the next five years, and plans to keep the name of the firm after the acquisition.
By Ahn Sung-mi (sahn@heraldcorp.com)