Mirae Asset Securities Co. is said to be mulling joining the race to acquire Hyundai Securities Co. through its investment into a private equity fund (PEF).

According to investment bank sources Sunday, Mirae Asset Securities, which took over Daewoo Securities from Korea Development Bank, is considering participating in a bid to acquire Hyundai Securities through its investment in a country’s PEF LK Investment Partners helmed by Kang Seung-boo, who has built his career as an credit analyst at Shinhan Investment Corp. Recently, LK Investment Partners submitted its letter of intent to take over the brokerage.

LK Investment Partners has attracted investment from financial firms at home and abroad since late last year to raise funds for the acquisition, and received positive response from three brokerages including Mirae Asset Management. However, no financial firms are yet to make the investment decision, said sources. A high-ranking official at Mirae Asset Management explained that Mirae Asset Securities is reviewing its takeover attempt, but nothing has been decided yet.

If LK Investment Partners raises funds from Mirae Asset Securities to win the bid, Mirae Asset is expected to see its equity capital rise to 5.8 trillion won ($4.9 billion) including Daewoo Securities’ equity capital, making it the country’ largest brokerage giant in terms of equity capital. Currently, Hyundai Securities has 3.2 trillion won worth of equity capital.

The bidders in the race to purchase Hyundai Securities include Korea Investment Holdings Co., KB Financial Group Inc., a local PEF Pine Street, LK Investment Partners, Global One Asset Management Co. and Hong Kong-based PEF. The bidders completed due diligence on Mar. 18 and the auction will be held on Mar. 25.

By Noh Hyun, Kang Doo-soon

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]