April 17, 2024

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[THE INVESTOR] With the long-delayed sale of SK Securities getting final approval from the financial authorities last week, expectations are high for other similar deals in the brokerage industry later this year.

The Financial Services Commission on July 26 gave its final nod to local private equity firm J&W Partners for purchasing a 10.4 percent stake in SK Securities from SK Holdings, which had been trying to sell its brokerage unit since 2015 to be compliant with the antitrust law that bans holding firms from owning a stake in financial companies. 

With the FSC giving its approval, industry watchers said other merger and acquisition deals could be completed later this year.

DGB Financial Group has submitted additional documents to acquire HI Investment & Securities. The deal to buy an 85 percent stake for 450 billion won (US$402.71 million) from Hyundai Mipo Dockyard, a Hyundai Heavy Industries affiliate, was put on hold after the Financial Services Supervisory demanded additional documentation in January. The Daegu-based financial group also failed to pass the large shareholders’ eligibility criteria in April as former Chairman Park In-gyu faces allegations of illicit hiring and creating slush funds.

Park stepped down in late March and his successor Chairman Kim Tae-oh expressed his eagerness to go ahead with the acquisition when he met with the heads of FSS and FSC.

DGB filed additional documents with the FSS earlier this month, industry sources said.

An official at the FSC said the authorities are reviewing the deal and are expected to take a decision later this year.

The financial authorities are also reviewing large shareholders’ eligibility of another deal between KOSDAQ-listed Sangsangin and Golden Bridge Investment and Securities.

In February, Sangsangin agreed to buy 41.84 percent in Golden Bridge for 42 billion won.

By Park Ga-young (gypark@heraldcorp.com)