Eugene rises after becoming sales target
Eugene Investment and Securities rose by daily limit for the third day in a row yesterday, on expectations that the brokerage will soon be sold. It rose 135 won (11 cents), or 14.9 percent, to 1,040 won yesterday.
“There seems to be an expectation among investors that the brokerage will perform better with a larger mother company,” said Gu Choel-ho, an analyst at Hyundai Securities.
On Friday, Eugene Group confirmed that three companies including KB Financial Group, which owns the nation’s top lender, are competing to take over its brokerage arm.
“Among multiple bidders, we chose three including KB Financial Group, considering the possibility of a takeover and buying conditions,” said a Eugene Group spokesman yesterday. “The due diligence [on Eugene Investment and Securities by the three companies] will begin sometime soon,” he said.
Until earlier this year, Eugene Investment and Securities planned a substantial expansion of its workforce after changing its name from Seoul Securities. Eugene Group, formerly focused on construction material and distribution businesses, extended its muscle into the brokerage industry at the end of last year by buying Seoul Securities.
However, to secure liquidity during this year’s credit crunch, the group said it will sell its 24 percent stake in Eugene Investment and Securities.
By Moon Gwang-lip Staff Reporter [joe@joongang.co.kr]
with the Korea JoongAng Daily
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