Cape Investment & Securities Co. and Q Capital Partners Co. are confirmed to have taken part in a main auction for a controlling stake in SK Securities Co., the brokerage unit under South Korea’s major conglomerate SK Group, according to the investment bank industry source on Thursday.

Multiple sources said SK Group and SK Securities’ sales advisor Samjong KPMG have received final bids from Cape Investment & Securities and Q Capital Partners to buy a 10.04 percent stake in SK Securities. They aim to name a preferred bidder by next week.

The latest auction comes as SK Group needs to sell all of its shares in SK Securities by August 2 to comply with the country’s fair trade law that bans a holding company from owning interest in a financial unit. With the deadline approaching, it is widely anticipated that the conglomerate would seek a buyer that is able to pass major shareholder eligibility evaluation and prove its financial ability to finance the buyout rather than one with a higher price offer. Ensuring job security and maintaining brand value will also be taken into consideration, sources noted.

Q Capital Partners, a local private equity fund management company, has shown a strong will to acquire SK Securities. To fund the buyout, it has arranged 56 billion won ($49.8 million) in funds by issuing new stocks worth 41 billion won to third parties to increase capital and has issued 15 billion won worth of convertible bonds.

Strategic investor Cape Investment & Securities, a smaller rival of SK Securities, is also considered an avid bidder as the acquisition would allow it to leap to become a brokerage with 600 billion won capital. Its current equity capital is worth 200 billion won.

By Kang Doo-soon and Chun Gyung-woon

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