An interior view of Hanwha Asset Management's headquarters in Seoul. (Hanwha Asset Management)
Hanwha Asset Management said Wednesday it has bought shares in Hanwha Group’s brokerage arm, Hanwha Investment & Securities, from other nonfinancial group affiliates.
The asset management firm acquired a combined 56.8 million common shares -- or a 26.46 percent stake -- in the brokerage house for 320.1 billion won ($274 million). Their sellers were auto parts maker Hanwha Global Asset, leisure service provider Hanwha Hotels & Resorts and department store operator Hanwha Galleria Timeworld.
The transaction was made in an off-market block trade Wednesday.
This increased Hanwha Asset’s stake in Hanwha Investment to 46.08 percent, from 19.63 percent. Before the deal, Hanwha Asset was the largest individual shareholder in the brokerage house.
Hanwha Asset said in a statement the deal will allow its financial arms to streamline the decision-making process through a vertical integration, paving the way for them to tap into overseas markets, spur digital transformation and enter into a new realm of business.
Hanwha Asset is wholly owned by Hanwha Life Insurance, a financial arm of Korea’s seventh-largest conglomerate.
By Son Ji-hyoung (firstname.lastname@example.org