Yuanta to complete acquisition of Korea’s Tongyang Securities
29 May 2014
Category: News, Asia, Global, Korea, Taiwan
By Hui Ching-hoo
Taiwan’s Yuanta Financial Holdings is scheduled to complete the acquisition of Korean securities house Tongyang Securities in the third quarter of this year, according to a report from Commercial Times.
The deal is the first securities house merger between Korea and Taiwan.
Under the agreement, Yuanta will submit a bid of NT$74.5 billion (US$248 million) to purchase a controlling 50.3% stake in Tongyang. The transaction received the go-ahead from the Korea Financial Supervisory Commission last week.
Yuanta Financial Holdings General Manager Wang Zhengxin told local media that the acquisition would help to expand the group’s securities brokerage business across Northeast Asia.
Established in 1962, Tongyang Securities has developed a global network across Hong Kong, Cambodia, Japan, and the US. It has independently conducted underwriting for IPOs in Cambodia. However, the firm suffered net losses of 49.27 billion won (US$48.28 million) and 5.01 billion won in 2012 and 2013, respectively.
Yuanta said it was confident that the firm’s business would return to the black in 2016.