Hana Financial Investment acquires 35% of Vietnam's BIDV Securities

Hana Financial Investment's office in Yeouido, western Seoul [HANA FINANCIAL INVESTMENT]

Hana Financial Investment became the second largest shareholder of a securities firm of a state-run bank in Vietnam.

Hana Financial Investment announced on Monday it acquired 35 percent of BIDV Securities for 142 billion won ($11.36 million). The deal was made in capital increase through a third-party allocation.

Ho Chi Minh City-headquartered BIDV Securities is a subsidiary of Vietnam’s state-run Bank for Investment and Development of Vietnam (BIDV). It is one of the largest four state-owned commercial banks in Vietnam and is the largest shareholder of BIDV Securities with a 52 percent stake.

BIDV Securities was the 11th largest in the Vietnamese stock brokerage sector as of last year.

Hana Financial Investment said that it plans to “actively take part in future management” of BIDV Securities.

Hana Financial Investment plans to help renew the digital platform of BIDV Securities and launch businesses, including asset management, and help strengthen credit loan and sale on consignment. BIDV Securities’ goal is to become a major broker in Vietnam by 2026 and to transform into a digitally specialized brokerage firm.

Hana Financial Investment “will strive to create new businesses using the nationwide networks BIDV Securities and bank have in Vietnam and Hana Financial Investment’s know-how in finance,” said a spokesperson for Hana Financial Investment in a statement on Monday. He added the company will set a new business model for global expansion through continued investment in overseas financial firms.

Established in 1999, BIDV Securities’ net profit last year was 18.8 billion won.

Hana Bank acquired 15 percent of BIDV for 1.02 trillion won in 2019.

BY JIN MIN-JI [jin.minji@joongang.co.kr]