Hanyang Academy, the school corporation, has initiated the sale of management rights of Hanyang Securities. Private equity fund (PEF) operator KCGI, LX Group, and Woori Financial Group are mentioned as potential buyers.
According to the investment banking (IB) industry on the 15th, Hanyang Academy, which operates Hanyang University, has been conducting behind-the-scenes negotiations with several companies regarding the sale plan of Hanyang Securities.
The Hanyang Academy holds approximately 40.45% of Hanyang Securities' shares. Considering the recent market capitalization of Hanyang Securities at around 180 billion KRW and the management premium, the estimated sale price in the industry is around 100 billion KRW.
The foundation is known to be exploring ways to resolve liquidity issues through the sale of the securities firm, as its subsidiary Hanyang Industrial Development has accumulated losses due to the real estate project financing (PF) turmoil, and Hanyang University Hospital is facing management difficulties due to a resident doctors' strike.
Last year, Hanyang Industrial Development posted a net loss of 49.619 billion KRW. On the 12th, amid rumors of the sale, Hanyang Securities' stock price closed at 13,950 KRW, up 9.07% from the previous day. The stock price has risen for six consecutive trading days since the 5th.
The Korea Exchange has requested Hanyang Securities to disclose information regarding the sale of shares by the largest shareholder and others. The deadline for the disclosure is noon on the 15th.
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