Shinhan Bank is accelerating its expansion into non-banking sectors by pursuing the acquisition of Sangsang Investment & Securities.
According to sources in the financial and investment banking sectors on August 6, Shinhan Bank signed a memorandum of understanding (MOU) with Sangsang Group last month for the acquisition of Sangsang Investment & Securities. The two parties have reportedly established exclusive negotiation rights until the third quarter.
The acquisition target includes a 55.85% stake in Sangsang Investment & Securities held by Sangsang Group, along with approximately 65% of shares from related parties. Based on the company's market capitalization, which was about 80 billion won as of the previous day's closing price, the actual transaction price is expected to be in the range of 100 to 200 billion won, considering management control premiums.
As the stock purchase agreement (SPA) has not yet been signed, the final transaction price and specific acquisition terms will be determined following due diligence.
Shinhan Bank's move to acquire Sangsang Investment & Securities is seen as part of its strategy to expand its non-banking business. Last year, Shinhan Bank acquired Trinity Asset Management from SK Securities, leading to the establishment of Shinhan Asset Management.
There are still procedural hurdles to clear before the transaction is finalized. As a special bank wholly owned by the National Federation of Fisheries Cooperatives, Shinhan Bank must consult with the Ministry of Oceans and Fisheries regarding the acquisition of a securities firm. Approval from the Financial Services Commission for the change of major shareholders is also required.
Shinhan Bank has stated that it has no information regarding the deal. A bank official commented, "We currently have no internal information, making it difficult to ascertain the facts. We have no position to disclose." Sangsang Investment & Securities clarified in a disclosure that it is in discussions with Shinhan Bank regarding the share sale, but no specific agreements have been finalized as of now.
* This article has been translated by AI.
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