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Insurance industry

South Korean Government Completes Sale of Hyundai Investment & Securities

Strategic Insights

— 1 min read

The South Korean government has completed the sale of an 80-percent stake in Hyundai Investment & Securities Co. to Prudential Financial Inc., with the US insurer paying 355.5 billion won (approximately $3 billion) to acquire the controlling stake. This deal marks a significant step towards rebalancing the troubled company's finances, with the government planning to inject about 2.2 trillion won in public funds to assist with the cleanup. The sale is expected to set a positive precedent for the restructuring of other ailing brokerages in South Korea.

Key Takeaways:

  • The South Korean government sold an 80-percent stake in Hyundai Investment & Securities Co. to Prudential Financial Inc. for 355.5 billion won (approximately $3 billion).
  • The deal includes an option for Prudential to purchase the remaining 20-percent share in Hyundai Investment & Securities Co. after three years, with an estimated value of 250 billion won.
  • The sale of Hyundai Investment & Securities Co. is expected to have a positive impact on the restructuring of other troubled brokerages in South Korea.
  • Prudential already holds an 8.46 percent stake in Korea's CJ Investment & Securities Co. and is the company's third-largest shareholder.
  • The US financial giant has rebranded the brokerage unit as Prudential Investment & Securities Co. and appointed Christopher Cooper as its CEO and president.

Statistics:

  • The sale price of Hyundai Investment & Securities Co. was 355.5 billion won (approximately $3 billion).
  • The planned injection of public funds into Hyundai Investment & Securities Co. is approximately 2.2 trillion won.
  • Prudential's current stake in CJ Investment & Securities Co. is 8.46 percent.
  • The estimated value of the remaining 20-percent share in Hyundai Investment & Securities Co. is 250 billion won.

Sources:

  • "S. Korean government seals deal to sell Hyundai Investment & Securities to Prudential" (Asia Pulse, February 27, 2023)
  • "Prudential to buy Hyundai Investment & Securities for 320 billion won" (Yonhap, November 2023)

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