Hanwha enters Japan with GI Capital Management buy
What's the deal? Hanwha Investment & SecuritiesDealroom has a profile for this one. Try Dealroom → has signed a contract to acquire a stake in Japanese securities firm GI Capital ManagementDealroom has a profile for this one. Try Dealroom →, marking its entry into the Japanese market. The deal value was not disclosed, and the company plans to complete the acquisition in the first half of next year, pending regulatory approval.
What's GI Capital? It is a small independent securities company that brokers overseas alternative investment products for Japanese institutional investors and runs securities and asset management businesses. Hanwha expects to tap its network of local institutional investors to build its Japanese operations.
Why now? Hanwha framed the move as a bid to secure a base in Japan's capital market, which is growing on the back of stock market revitalisation and value-up policies. The firm recently expanded its capital through a US$419.2M paid-in capital increase — US$209.6M each from Hanwha Life InsuranceDealroom has a profile for this one. Try Dealroom → and Hanwha Asset ManagementDealroom has a profile for this one. Try Dealroom →.
The bigger push: Japan extends an overseas expansion that began with Vietnam in 2019, when Hanwha bought a 90.05% stake in HFT SecuritiesDealroom has a profile for this one. Try Dealroom → (now Pine Tree SecuritiesDealroom has a profile for this one. Try Dealroom →), later raised to 98.38%. It has since acquired 80% of Indonesia's Ciptadana Securities and Ciptadana Asset ManagementDealroom has a profile for this one. Try Dealroom →, with a call option on the remaining 20% after three years.
While the stake ratio was not disclosed, Hanwha is likely to seek a majority and secure management rights, in line with those earlier deals.
What they said: "We will strengthen the competitiveness of the traditional financial business based on the professional manpower owned by GI Capital Management and the network of local institutional investors," said Jang Byung-ho, chief executive officer of Hanwha Investment & Securities.
The signal: The deal shows South Korean brokerages pushing beyond Southeast Asia into mature markets like Japan, using local acquisitions to plug into established institutional networks rather than building from scratch.
Read more: mk.co.kr
Image credit: OiMax
