Mirae Asset Daewoo Securities will merge with Mirae Asset Securities on Nov. 1, with Chairman Park Hyeon-joo taking over as the chairman and CEO of the newly merged securities firm. The boards of the two firms approved the merger, which will be made in the form of Mirae Asset Daewoo taking over Mirae Asset Securities.
The merger ratio is 1:2.971.
Mirae Asset Daewoo Securities made a capital increase of $100 million (113.5 billion won) to its subsidiary in New York to strengthen its overseas operation.
The latest movement was made just six days after Park Hyeon-joo, chairman of Mirae Asset Financial Group, revealed a plan to increase capital to overseas subsidiaries during the open business strategy conference on Apr. 15. It showed Park’s will for “speed management” to strengthen the global competitiveness of Mirae Asset Daewoo Securities.
Mirae Asset Daewoo publicly announced that it participated in a paid-in capital increase to its affiliate in New York and acquired 25,000 new stocks for $100 million (113.5 billion won) on April 21. Accordingly, the capital of the subsidiary increased by nearly 10 times from $12 million (13.62 billion won) to US$112 million (127.12 billion won).
Founded in 1992, Mirae Asset Daewoo’s subsidiary in New York has been selling Korean stocks to American institutional investors and selling American stocks to Korean institutional investors. With the latest capital increase, however, it will directly invest in assets, including shares in the U.S. and seek investment opportunities in North America and Central and South America.
An official from Mirae Asset Daewoo said, “The latest capital increase was made to secure finances for the wealth management business expansion of the affiliate in New York and expand its alternative investment and principal investment.
The subsidiary will make not only a direct investment in the market but also a joint investment with the related divisions in the headquarters and Mirae Asset Global Investments when it finds other investment opportunities.”
Meanwhile, Chairman Park announced a plan to increase capital by 300 billion to 500 billion won ($264.32 million to $440.53 million) to its affiliates in the U.S., Indonesia, Vietnam and London, in which Mirae Asset Daewoo already has local offices. Thus, additional paid-in capital increase will continue into the future.
Mirae Asset Securities Co. will establish a committee for the merger with Mirae Asset Daewoo in the middle of next month. The committee will be led by Chairman Park and it will consist of nine members, including Mirae Asset Securities President Cho Woong-ki and Mirae Asset Daewoo CEO Hong Sung-guk.
An official from Mirae Asset Securities said, “As the company seeks to establish a legislative body called “Integration Promotion Committee,” the efforts for the completion of the merger on Oct. 1 will be accelerated along with the working-level integration task force team which currently works on the merger.
South Korea’s Mirae Asset Financial Group is in the process of taking over KDB Daewoo Securities Co. It decided to set up a global investment bank center and a global trading room in a bid to grow as a leading global investment bank with more diversified investments in overseas markets.
Mirae Asset Financial Group should parlay the organization, management and process to meeting the global standard, the group Chairman Park Hyeon-joo said in his New Year’s address. “We plan to set up a global investment bank center to significantly expand investments in venture capital as well as in private equity funds, real estate and social overhead capital (SOC) to become a market leader,” he said.
Chairman Park also unveiled a plan to open a global trading room inside the financial group’s building so that young and talented individuals can build their own financial experiences and grow as global traders. The trading room will open on a 1,000-pyong (3,300 square meters) site on the 35th floor of Mirae Asset’s Center One 1 building in central Seoul.
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