Hanwha Securities to buy two units of Prudential

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SEOUL, Feb. 12 (Yonhap) -- Hanwha Securities Co. signed an agreement Friday to
buy the South Korean brokerage and asset management units of U.S. life insurer
Prudential Financial Inc., Hanwha said, a deal estimated to be worth 490 billion
won (US$425.4 million).
The mid-sized South Korean brokerage house said it clinched the deal to buy a 100
percent stake in Prudential Investment & Securities Co. and a 99.8 percent
interest in Prudential Asset Management Co. The deal is subject to regulatory
approval.
"The move will pave the way to beef up our asset management business," Hanwha
said in a statement.
On the back of the news, shares of Hanwha Securities rose 4.5 percent to close at
9,160 won on the main bourse.
"The purchase will help boost business synergy with a focus on the asset
management business," said Park Eun-jun, an analyst at Shinyoung Securities Co.
"To fund the deal, there is a possibility that Hanwha may sell bonds or shares
worth 300 billion won."
Hanwha Securities and the Australia-based Macquarie Group had been vying for the
purchase of the two units of the U.S. insurance company. KB Financial Group,
South Korea's top financial services company, dropped out of the bidding.
Prudential Financial put up the two units for sale as the global financial
turmoil prompted it to cut non-core assets in a bid to focus on the life
insurance business.
Hanwha Group, the parent of Hanwha Securities, is seeking to expand its business
in the financial sector. The group's life insurance unit, Korea Life Insurance
Co., plans to go public in March.
sooyeon@yna.co.kr
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