The state-run Korea Development Bank (KDB) said on Dec. 24 that a consortium led by Mirae Asset Securities has been named as the preferred bidder to acquire a controlling stake in KDB Daewoo Securities, the country’s second-largest brokerage by capital.
The state-run KDB, the largest shareholder of KDB Daewoo Securities, said the preferred negotiator selection was made under the principles of ‘value maximization, speedy sale and contribution to the local capital market.”
The Mirae Asset consortium – comprised of Mirae Asset Securities and Mirae Asset Global Investments -- offered the highest 2.4 trillion won ($2.06 billion) for a 43 percent stake in Daewoo Securities and 100 percent of KDB Asset Management.
The Mirae Asset consortium will pay 120 billion won, 5 percent of its bid, upfront as a penal sum by January 4, 2016, and sign a stock purchase agreement sometime in January. Mirae Asset will conduct due diligence on the brokerage in February before completing the deal.
Mirae Asset Financial Group Chairman Park Hyeon-joo said: “I feel deeply grateful that Mirae Assets’ continued endeavors to evolve into a global investment bank have been recognized.”
“The marriage between Mirae Asset, an innovator in the capital market, and the country's leading brokerage house KDB Daewoo Securities will help Mirae Asset grow into a global investment bank that represents Asia,” added Chairman Park.
Mirae Asset Securities aims to reach 10 trillion won in combined capital, 1 trillion won in pre-tax profit and a 10 percent pre-tax ROE (return on equity) by 2020.
