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South Korea approves sale of Hyundai insurers to Prudential
Seoul, Nov 25: South Korea`s financial watchdog has signed a contract to sell Hyundai Investment & Securities Co to US-based Prudential Financial Inc as part of a restructuring of the country`s investment-trust sector.
Seoul, Nov 25: South Korea's financial watchdog
has signed a contract to sell Hyundai Investment & Securities Co to US-based Prudential Financial Inc as part of a
restructuring of the country's investment-trust sector.
The US life insurer will buy a controlling 80 per cent stake in ailing Hyundai I&S and its wholly owned Hyundai Investment Trust Management Co Unit, the Financial Supervisory Commission said in a statement today.
The deal is expected to strengthen competition in the domestic investment trust sector and accelerate a restructuring of South Korea's securities industry, the FSA said, adding that it would also have "a positive impact on improving foreign investor sentiment."
Prudential has said the sale will help it expand in key Asian markets.
The price will be based on Hyundai I&S' earnings before interest, taxes, depreciation and amortisation in the past year, the FSC said. The price will be announced at the time of closing, which is expected early next year.
The sale will leave state-run Korea Deposit Insurance Corp with the remaining 20 per cent stake in Hyundai I&S, but Prudential will have a call option to buy that stake within three years.
Bureau Report
The US life insurer will buy a controlling 80 per cent stake in ailing Hyundai I&S and its wholly owned Hyundai Investment Trust Management Co Unit, the Financial Supervisory Commission said in a statement today.
The deal is expected to strengthen competition in the domestic investment trust sector and accelerate a restructuring of South Korea's securities industry, the FSA said, adding that it would also have "a positive impact on improving foreign investor sentiment."
Prudential has said the sale will help it expand in key Asian markets.
The price will be based on Hyundai I&S' earnings before interest, taxes, depreciation and amortisation in the past year, the FSC said. The price will be announced at the time of closing, which is expected early next year.
The sale will leave state-run Korea Deposit Insurance Corp with the remaining 20 per cent stake in Hyundai I&S, but Prudential will have a call option to buy that stake within three years.
Bureau Report