- News>
- Finance & Markets
Seoul approves sale of Hyundai`s ailing security to Prudential
Seoul, Nov 18: The South Korean government today gave the green light to a plan to sell the Hyundai group`s ailing securities house to Prudential Financial inc. of the United States, officials said.
Seoul, Nov 18: The South Korean government today gave the green light to a plan to sell the Hyundai group's ailing securities house to Prudential Financial inc. of the United States, officials said.
The Public Fund Oversight Committee (PFOc) of the finance ministry approved the $400 million deal to sell Hyundai Investment and Securities Co. and its subsidiary, Hyundai investment trust management co., to the US insurer.
"At today's meeting, the PFOc was briefed on the sale and virtually approved the general direction of the sale," Chon Chol-Hwan, head of the PFOC told journalists.
He declined to give details on terms of the sale. In March, Prudential agreed in principle to pay $ 400 million for 80 per cent stake in Hyundai investment and securities and Hyundai Investment Trust Management.
Hyundai investment and securities owns a 95 per cent stake in Hyundai investment trust management.
Prudential has also been engaged in talks to buy another South Korean money management company, CJ Investment and Securities Co.
"We expect to see a memorandum of understanding signed in the coming week" between its owner, CJ, and Prudential, a spokesman for CJ investment and securities said.
The government had to rush public funds into Hyundai Investment and Securities and many other South Korean money management operations which were hit by the 1997-1998 financial crisis in Asia.
Bureau Report
"At today's meeting, the PFOc was briefed on the sale and virtually approved the general direction of the sale," Chon Chol-Hwan, head of the PFOC told journalists.
He declined to give details on terms of the sale. In March, Prudential agreed in principle to pay $ 400 million for 80 per cent stake in Hyundai investment and securities and Hyundai Investment Trust Management.
Hyundai investment and securities owns a 95 per cent stake in Hyundai investment trust management.
Prudential has also been engaged in talks to buy another South Korean money management company, CJ Investment and Securities Co.
"We expect to see a memorandum of understanding signed in the coming week" between its owner, CJ, and Prudential, a spokesman for CJ investment and securities said.
The government had to rush public funds into Hyundai Investment and Securities and many other South Korean money management operations which were hit by the 1997-1998 financial crisis in Asia.
Bureau Report