KB Financial, Hyundai Securities to ink takeover deal next week

KB Financial Group is expected to sign a stock-purchase agreement to take over Hyundai Securities Co. next week, industry sources said Saturday.

KB Financial was chosen as the preferred bidder in late March, beating two major rivals, Korea Investment Holdings Co. and Hong Kong-based private equity firm Actis, in the bid to acquire a controlling 22.56-percent stake in Hyundai Securities.

The deal came in line with Hyundai Group's efforts to revitalize Hyundai Merchant Marine Co., a key shipping unit. Last year, Hyundai Merchant posted 253.5 billion won (US$220 million) in operating losses, while its capital significantly eroded.

Although the agreement was expected to be signed earlier this week, the companies said the schedule was delayed due to procedure-related matters. They did not reveal details.

KB reportedly offered the highest price of more than 1 trillion won (US$8.67 billion) for the majority stake.

"We are currently discussing the final price," an official from EY Hanyoung, which oversees the deal. "Although there may be a 1-2 percent adjustment, the amount will still hover around 1 trillion won as suggested."

The price offered by KB was around three times higher than the market estimate. Market watchers said Hyundai Securities was one of few brokerage houses available for sale in the local financial market.

They said although it usually takes around two months to win governmental approval for changing the top shareholder of financial organizations, the process will be shortened in this case, given KB Financial's liquidity.

(Yonhap)