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Hanyang Securities (photo = Hanyang Securities) |
[Alpha Biz= Reporter Kim Sangjin] KCGI, the private equity firm known for its aggressive investment style, has revised its terms regarding the acquisition of Hanyang Securities (001750). The firm now plans to directly manage the company for at least five years before selling it, with the potential buyer not limited to OK Financial Group, contrary to the original plan, which was to sell to OK Financial Group after three years of management.
According to investment banking (IB) sources on the 10th, KCGI is preparing to submit an application for approval of the change in major shareholder of Hanyang Securities to the Financial Services Commission (FSC) within this month. The review is expected to be completed within 60 days of the application. Barring any unexpected developments, the acquisition process is expected to be finalized by early March next year.
In September, KCGI signed a contract to acquire a 29.59% stake in Hanyang Securities (3.76 million shares) from the Hanyang Foundation for 220.4 billion KRW, at a price of 58,500 KRW per share. The delay in the approval process has raised concerns in the market that the acquisition might face setbacks.
The delay in the approval process has been attributed to difficulties in reconciling differing views between KCGI and the regulatory authorities. The two sides have reportedly had sharp disagreements over the minimum management period and the potential buyer. Initially, KCGI planned to manage Hanyang Securities for just three years before selling it to OK Financial Group. However, regulators did not accept this plan, citing concerns over the stability of the securities firm’s operations and fears of an indirect entry of OK Financial Group into the securities industry.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
