Published : 2014-02-25 16:07
Updated : 2014-02-25 16:08
A Taiwanese financial company submitted a bid for Tongyang Securities Inc., a brokerage arm of the embattled Tong Yang Group put up for sale following the group's liquidity crunch, industry sources said Tuesday.
According to the sources, Tong Yang closed bidding for its brokerage unit earlier in the day. Taiwan-based Yuanta Securities was the sole bidder.
Whether Yuanta will be picked as the preferred bidder would be decided later in the day or by Wednesday, they said.
The stake up for sale is some 27 percent held by the group's affiliates.
Yuanta, under the wing of Yuanta Financial Holdings, is Taiwan's No. 1 brokerage house.
Tongyang Securities has been under fire for misleading investors about risks entailed in corporate bonds and commercial papers they were selling. A bulk of such debt was issued by its parent group as underlying assets.
Industry watchers estimated that the price tag could reach some 200 billion won ($186 million).
Tong Yang Group, the country's 38th-largest conglomerate, has been placed under debt restructuring after failing to pay back its debts in late September. (Yonhap)