Hyundai picks KB as potential buyer of brokerage unit

By Park Sae-jin Posted : March 31, 2016, 21:12 Updated : March 31, 2016, 21:12

[Courtesy of Hyundai Merchant ]


South Korea's largest retail bank KB Financial was selected Thursday as the preferred bidder for Hyundai Securities, which has been up for sale for the restructuring of a troubled shipping company.

KB Financial was picked over Korea Investment Holdings and Hong Kong-based private equity firm Actis.

Hyundai Merchant Marine, the country's second-largest shipping company, has offered to sell a 22.56 percent stake in Hyundai Securities.

The announcement came two days after creditors agreed on co-management of Hyundai Merchant in a bid to keep it alive in return for a sweeping self-rescue plan.

KB offered the highest price of more than one trillion won (877 million US dollars), far higher than the market value of the stake. Hyundai Merchant promised to complete the deal in the second half of this year.

Hyundai Merchant has proposed co-management with creditors to tide over its liquidity crunch through a self-rescue plan. It is saddled with a total debt of about four billion dollars.

Creditors have urged Hyundai Merchant to ride out its liquidity crisis through aggressive restructuring and sales of non-core assets. Last year it posted 253.5 billion won in operating losses amid a protracted slump in the shipping industry.

Aju News Lim Chang-won = cwlim34@ajunews.com
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