[THE INVESTOR] Local private equity firm J&W Partners has received the green light from Korea’s Securities and Futures Commission to purchase a 10.4 percent stake in SK Securities for 51.5 billion won (US$45.47 million), according to regulators on July 20.

The SFC, which is under Korea’s top financial regulator Financial Services Commission, approved J&W Partners’ eligibility as the majority shareholder of the brokerage unit of SK Group. 

SK Securities' signage.

The deal is pending final approval at the FSC’s regular meeting slated for July 25, but industry watchers project J&W Partners will easily attain the nod to pass all clearance for the acquisition.

Since last June, SK has been looking for a new owner for its brokerage arm that has been under the conglomerate for 26 years, to be compliant with the antitrust law that bans holding firms from owning a stake in financial companies. The rest of SK Securities, about 80 to 90 percent, is held by minority shareholders.

Last year, a consortium led by Cape Investment & Securities was picked as a preferred bidder for SK Securities for 60.8 billion won, but the deal was scrapped for failing to get regulator’s clearance.

J&W Partners clinched the 51.5 billion deal in March, about 15 percent under Cape Investment & Securities’ offer, due to the performance decline of the brokerage house this year. SK Securities’ operating profit came to 4.8 billion won in the first quarter this year, dropping 62.7 percent on-year.

J&W Partners said it will secure the current jobs of employees for the next five years, and plans to keep the name of the firm after the acquisition.

By Ahn Sung-mi (sahn@heraldcorp.com)