Suhyup Bank is pushing to acquire Sangsangin Investment & Securities, a brokerage listed on the Korea Exchange's KOSPI.
According to the investment banking (IB) industry on the 6th, Suhyup Bank recently signed a memorandum of understanding (MOU) with Sangsangin Group for the acquisition of Sangsangin Investment & Securities, securing exclusive negotiation rights.
The deal targets a controlling stake, including the 55.85% equity in Sangsangin Investment & Securities held by Sangsangin, which functions as the holding company of Sangsangin Group, and the purchase price is discussed at around 200 billion won.
Suhyup Bank's push to acquire Sangsangin Investment & Securities is seen as part of its nonbanking expansion. Earlier last year, it also acquired Trinity Asset Management from SK Securities.
Suhyup Bank has reportedly selected accounting firm Samil PwC and law firm Kim & Chang as advisors for the acquisition and has begun due diligence.
Suhyup Bank plans to finalize terms, including the final transaction price, after due diligence. However, as consultations with the Ministry of Oceans and Fisheries and approval for a change in the largest shareholder are also required, the closing of the transaction is expected to take time.
In fact, Suhyup Bank is a specialized bank wholly owned by the National Federation of Fisheries Cooperatives. It is understood that prior consultation with the Ministry of Oceans and Fisheries is also required to acquire a securities firm.
Meanwhile, Sangsangin Investment & Securities disclosed the same day that it is "in talks with Suhyup Bank regarding the sale of our equity," but added that "nothing has been finalized."