Taiwan-based Yuanta Securities has reportedly offered 125 billion won ($118 million) to purchase a 27.06 percent stake in Tong Yang Securities, industry sources said Friday.
Yuanta was the only bidder for the cash-strapped Tong Yang Group’s brokerage house, which was allegedly involved in underwriting and issuing fraudulent bonds of its affiliates to retail investors to offset the group’s liquidity crunch.
Group chairman Hyun Jae-hyun has been imprisoned as prosecutors further investigate to charge him with fraud and embezzlement.
Tong Yang International and Tong Yang Leisure hold the 27.06 percent stake that Yuanta seeks to acquire.
Yuanta was chosen as the Korean brokerage house’s preferred bidder last Thursday.
The Taiwan-based securities company’s 125 billion won offer includes a management premium worth 44 billion won.
Yuanta is also expected to invest in rights offering by Tong Yang Securities at 2,100 won per share.
Its planned purchases of existing and new shares will increase Yuanta’s ownership in Tong Yang to about 50 percent, making the Taiwan-based company the majority shareholder with a controlling interest.
Yuanta Securities, a wholly owned subsidiary of Yuanta Financial Holdings, is Taiwan’s leading brokerage with more than 5,200 employees. It leads in stocks and bonds underwriting, as well as futures brokerage, according to media reports.
By Park Hyong-ki (firstname.lastname@example.org)