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Hanyang Securities (Photo: Hanyang Securities) |
[Alpha Biz= Paul Lee] KCGI, the preferred bidder for the acquisition of Hanyang Securities, and Hanyang Academy, the seller, have decided to proceed with the sale process by the first half of this year.
There had been concerns in the market that the sale of Hanyang Securities might be canceled due to KCGI's ongoing tax investigation by the National Tax Service (NTS). However, the parties involved have stated that, since the original contract deadline is set for June, they will continue with the process as planned without any changes.
According to sources in the investment banking (IB) industry on Wednesday, KCGI and Hanyang Academy plan to proceed with the sale process as originally scheduled, with the stock purchase agreement (SPA) deadline set for the end of June.
A representative from Hanyang Academy explained, "The SPA contract period was originally set until late June, and there is still plenty of time. If the period ends, we will naturally take appropriate measures, but for now, we do not anticipate terminating the contract."
The representative added, "Currently, the sale process for Hanyang Securities is progressing amicably with KCGI."
On the 11th, the Seoul Regional Tax Office's Investigation Division 4 began a tax investigation into KCGI. This division is known for conducting large-scale strategic investigations rather than regular tax audits, raising concerns that the acquisition of Hanyang Securities by KCGI might be jeopardized. Financial companies such as securities firms and asset management firms must undergo shareholder eligibility reviews by financial authorities, and the results of the tax investigation could be an obstacle.
KCGI has stated that it is cooperating swiftly with the tax investigation and plans to discuss the timing of the shareholder eligibility review with financial authorities. The review was initially scheduled to take place by the end of this month, but the investigation has delayed the timeline.
Given the typical duration of tax investigations, it is expected that the results will be available before the end of June, and the shareholder eligibility review will likely resume around that time.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
