NU Online News Service, Nov. 25, 2003, 4:52 p.m. EST – Prudential Financial Inc., Newark, N.J., has agreed to acquire two large Korean financial services companies from Korean regulatory agencies.[@@]
Under the terms of the agreement, Prudential would buy an 80% stake in Hyundai Investment and Securities Company Ltd. and its Hyundai Investment Trust Management Company Ltd. subsidiary from the Korean Deposit Insurance Corp. and the Korean Financial Supervisory Commission.
Prudential has not agreed to buy a stake in Hyundai Securities, another large Hyundai Investment affiliate, but it would have an option to buy the remaining 20% of Hyundai Investment three to six years after the deal closing date.
Completing the deal would make Prudential the largest foreign asset manager in Korea, Prudential says.
Hyundai Investment manages the equivalent of about $14 billion in assets and has an 11% share of the Korean asset management market. The trust company subsidiary has 510 sales representatives and a network of 90 branch offices.
Prudential, which already owns a life insurance subsidiary in Korea, announced a memorandum of understanding about the deal in March.
Prudential has been selling insurance in Korea through The Prudential Life Insurance Company of Korea Ltd. for 13 years.