NU Online News Service, Feb. 27, 2004, 2:09 p.m. EST – Prudential Financial Inc., Newark, N.J., has completed the acquisition of 2 major Korean financial services companies from Korean regulators.[@@]
Prudential paid the equivalent of about $300 million for 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.
Hyundai Investment manages the equivalent of about $14 billion in assets. The trust company subsidiary has 510 sales representatives and a network of 90 branch offices.
The deal did not include a stake in Hyundai Securities, another large Hyundai Investment affiliate, but Prudential has an option to buy the remaining 20% stake in Hyundai Investment 3 months to 6 months after the deal closing date.
Prudential now controls more than 10% of the Korean asset management market, and it is in talks to acquire control over another Korean investment company, C.J. Investment & Securities Company Ltd., Seoul.
Prudential has been selling insurance in Korea through The Prudential Life Insurance Company of Korea Ltd. for 13 years. The company has formed a new Korean unit, Prudential Investment & Securities Company Ltd., to run the investment operation. Chris Cooper, the Prudential executive who helped negotiate the Hyundai deal, will be the president of the new Prudential Investment unit.