South Korea’s Hanwha Investment & Securities has completed the acquisition of a 90.05 per cent stake in Vietnam-based HFT Securities for 5 billion won ($4.3 million).
Hanwha’s brokerage arm said, it had received approval from the State Securities Commission of Vietnam on April 22.
The sellers of the shares include Greenway Logistics, Green Way Development Investment and six individuals, according to the Hanoi Stock Exchange where HFT is listed.
In February, HFT’s shareholders had agreed to offload their stakes to the Seoul-headquartered firm.
Hanwha Investment & Securities said that through the takeover, it will build an online financial services platform to become a top digital specialty securities company in Vietnam.
“Hanhwa Investment & Securities has secured new growth engines by expanding our business scope in the high growth potential market of Vietnam,” said Hanhwa Investment & Securities CEO Kwon Hee-baek.
Hanwha, whose industries span solar energy, aerospace, machinery to finance, sees “exciting opportunities” in Vietnam. Its life insurance unit, Hanwha Life, has been present in the market for a decade and is currently the eighth largest player locally.
In August 2018, Hanwha Asset Management invested $400 million in diversified firm Vingroup. It has opened an office in Ho Chi Minh City this month.
Other Hanwha subsidiaries operating in Vietnam include Hanwha Techwin, Hanwha Aerospace, Hanwha Energy, Hanwha Corporation/Trade and Hanwha Precision Machinery.
Yet, the Korean chaebol said last December that “the journey for Hanwha in Vietnam has only just begun”.