Shinhan Investment Corp snaps up Vietnam’s Nam An Securities

Visual from Shinhan Investment Corporation website

Korea’s securities brokerage and investment banking house Shinhan Investment Corporation will complete the 100 per cent purchase of Nam An Securities Co within the next three months, the Vietnamese brokerage announced on Wednesday.

According to a State Securities Commission approval of the transaction signed on July 3, seven individual shareholders of Nam An Securities will transfer 14 million shares, or 100 per cent equity of the company, to the Korean investor within 90 days from the signing date.

As a result, Nam An Securities will be transformed from a joint stock firm to a one member limited liability company, wholly owned by the Seoul-based investor, which had a paid-in capital of almost VND25.2 trillion ($1.16 billion) by the end of last fiscal.

Shinhan Investment was created in 2002 as Shinhan Securities, then a subsidiary of Shinhan Financial Group and was merged with Good Morning Securities. It is targeting to become a full-service securities platform for Asia by 2020.

The Shinhan Financial Group already has a presence in the Vietnam insurance and banking industry. Last month, Shinhan Life Insurance opened a branch in the country, its first overseas office.

Meanwhile, Shinhan Bank Vietnam announced on July 6 that it has opened a branch in northern Thai Nguyen province of Vietnam, as its 13th channel, while anticipating to launch a 14th outlet in Hanoi next month.

The Korean financial conglomerate is looking to close the gap with HSBC Bank, which has the largest network in Vietnam. In addition, Shinhan Bank also aims to develop customised fintech by securing partnership with local firms.

Nam An Securities is not a big name in the Vietnam stock market. It has been a loss making firm for the past decade, with the loss reaching as high as VND57.9 billion in 2008.

Vietnam allowed foreign investors to hold 100 per cent in local securities firms in 2012. However, only one such company was set up, the Maybank Kim Eng Securities (Malaysia). Another Korean-invested securities house – KIS Vietnam – has an overseas investor that hold more than 92 per cent stake.

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