ID :
210954
Tue, 10/04/2011 - 06:12
Auther :
Shortlink :
https://oananews.org//node/210954
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S. Korean firms spending big on stake purchases this year
SEOUL (Yonhap) - South Korean firms this year spent 10 times more on stake purchases from the year before as they have sought mergers and acquisitions (M&As) in the wake of economic turmoil, the main bourse operator said Tuesday.
The companies listed on the local stock market spent a total of 22.2 trillion won (US$18.5 billion) to obtain stakes in other companies through September this year, compared with a meager 1.8 trillion won a year earlier, according to the Korea Exchange (KRX).
The average spending by the firms also increased 179.5 percent to 193.2 billion won, the KRX said.
Such a spike in spending on stake purchases came as firms armed with ample cash hastened moves for M&As. Also, big-ticket takeover deals including Hana Financial Group Inc.'s bid to buy Korea Exchange Bank (KEB) boosted overall spending on stake purchases, the operator said.
South Korea's No. 4 banking group reached a 4.41 trillion won agreement valid till next month to buy a 51.02 percent stake in KEB from U.S. private Lone Star Funds, its current owner.
In April, top automaker Hyundai Motor Co. and its two affiliates wrapped up a 4.9 trillion won deal to buy Hyundai Engineering and Construction Co.
Meanwhile, the listed firms' divestiture of their stakes in other companies also shot up 413 percent to 9.1 trillion won during the cited period, the KRX said.
The companies listed on the local stock market spent a total of 22.2 trillion won (US$18.5 billion) to obtain stakes in other companies through September this year, compared with a meager 1.8 trillion won a year earlier, according to the Korea Exchange (KRX).
The average spending by the firms also increased 179.5 percent to 193.2 billion won, the KRX said.
Such a spike in spending on stake purchases came as firms armed with ample cash hastened moves for M&As. Also, big-ticket takeover deals including Hana Financial Group Inc.'s bid to buy Korea Exchange Bank (KEB) boosted overall spending on stake purchases, the operator said.
South Korea's No. 4 banking group reached a 4.41 trillion won agreement valid till next month to buy a 51.02 percent stake in KEB from U.S. private Lone Star Funds, its current owner.
In April, top automaker Hyundai Motor Co. and its two affiliates wrapped up a 4.9 trillion won deal to buy Hyundai Engineering and Construction Co.
Meanwhile, the listed firms' divestiture of their stakes in other companies also shot up 413 percent to 9.1 trillion won during the cited period, the KRX said.
