Hanwha mulling purchase of Prudential's local brokerage

(ATTN: ADDS details, share prices in para 3-9)
SEOUL, Jan. 12 (Yonhap) -- Hanwha Securities Co. is mulling the acquisition of
the South Korean brokerage unit of U.S. financial giant Prudential Financial
Inc., Hanwha said Tuesday.
"The company is studying the purchase of Prudential Investment & Securities Co.
as a tool to evolve into a competitive securities company," Hanwha said in a
regulatory filing to the Korea Exchange.
The brokerage company, however, dismissed market speculation that it may sell new
shares to fund the deal, noting "it has yet to decide on ways to raise capital
for the takeover."
Shares of Hanwha closed at 9,520 won (US$8.50) on the Seoul bourse, down 7.12
percent from Monday.
U.S.-based Prudential Financial said on Oct. 5 that it plans to unload its
brokerage and asset management units, with sales that analysts say could reach at
least 500 billion won, in Korea.
The parent company is scheduled to come up with preferred bidders for the two
units towards the end of January after its planned selection in December was
delayed.
"Hanwha is expected to strongly push for the acquisition as Hanwha Group
struggles to expand its brokerage business to a size equal to that of its
insurance operations," said Park Eun-joon, an analyst at Shinyoung Securities Co.
Hanwha has Korea Life Insurance Co., the country's third-largest life insurer,
and Hanwha Non-Life Insurance Co. under its wing.
Prudential Investment will be a good match for Hanwha, given its expertise in
asset management and its affordable price, Park said.
Competitors for Prudential Investment include KB Financial Group Inc., which is
also angling for a brokerage takeover as the nation's top financial service
company tries to ramp up its brokerage operations.
pbr@yna.co.kr
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