Japan’s Orix, PE firm bid for S.Korea’s Hyundai Securities, says source-Reuters

(Reuters) – Japan’s Orix Corp and South Korean private equity firm Pinestreet have submitted bids for a controlling stake in securities brokerage Hyundai Securities Co Ltd, a source with direct knowledge of the matter said on Tuesday.

Each bidder has offered more than 1 trillion won ($926.2 million) for the combined 36.7 percent stake held by Hyundai Merchant Marine Co Ltd and other shareholders, the Korea Economic Daily reported, citing unnamed buy-side sources.

The stake was put up for sale after parent Hyundai Group announced in 2013 it would sell assets including its financial units to cut debt.

The reported offers are more than 60 percent higher than the stake’s market value upon Monday’s closing.

The source declined to be identified as the sales process was private.

Korea Development Bank, the financial advisor for the sale, said the preferred bidder was expected to be chosen this week, declining further comment.
Hyundai Securites declined to comment. Orix and Pinestreet were not immediately reachable.