South Korean firms have increased spending on purchasing stakes in affiliated firms and other companies this year, seeking mergers and acquisitions to realign their business portfolios, the main bourse operator said Monday.

Companies listed on the local stock market spent a total of 12.19 trillion won ($11.49 billion) through Oct. 15 to obtain stakes in other companies, compared with 10.99 trillion won a year earlier, according to the Korea Exchange.

Such a spike in spending on stake purchases came as firms armed with ample cash hastened moves for M&As. Also, big-ticket takeover deals boosted overall spending on stake purchases, the operator said.

BS Financial Group, a regional financial group, took over Kyongnam Bank for 1.23 trillion won, and KB Financial Group offered to buy LIG Insurance Co. for 685 billion won, according to the KRX.

Meanwhile, listed firms’ divestitures of stakes in other companies also shot up 64 percent to 7.19 trillion won during the cited period. (Yonhap)