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Banking & Finance

KB Securities to acquire 99.4% of Maritime Securities

Released at: 10:12, 29/09/2017

KB Securities to acquire 99.4% of Maritime Securities

Illustrative image (Source: cafef.vn)

$33.16 million deal expected to be finalized by end of October.

by Hai Van

South Korea’s KB Securities is moving to acquire a 99.4 per cent holding in Vietnamese brokerage Maritime Securities Incorporation (MSI) for $33.16 million, according to news from KB Securities.

The two have signed an agreement that will see KB purchase the holding in the Maritime Bank subsidiary. The transaction is expected to be finalized in late October.

KB Securities will expand MSI’s business activities after the deal comes to pass and will help it cooperate with members of the KB Financial Group, such as KB Kookmin Bank.

In January, MSI withdrew plans to list on the Hanoi Stock Exchange (HNX). At its annual shareholders’ meeting for 2017, it also approved expanding its foreign ownership limit to 100 per cent and allowing domestic and foreign partners to buy more than 25 per cent from existing shareholders without going public.

MSI’s total assets stand at VND674 billion ($29.65 million), including investments in Maritime Bank with a book value of VND93 billion ($4.09 million). In the first half of this year, after-tax profit was VND16.54 billion ($727,828), down 6 per cent year-on-year, according to its financial report.

MSI is currently a medium-sized securities company in Vietnam. In 2016, it accounted for a 3.5 per cent brokerage market share on HNX and 1.7 per cent on the Ho Chi Minh Stock Exchange (HSX).

There are many active South Korean securities companies on Vietnam’s stock market, including KIS Vietnam, Mirae Asset Vietnam, Shinhan Vietnam, and Maybank KimEng.

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