JB Financial acquires Morgan Stanley's securities firm in Vietnam

16, Dec. 2019

SEOUL, AJU -- In a strategy to expand its overseas business, JB Financial Group, a second-tier financial group in South Korea, signed a deal to acquire a Vietnamese securities firm owned by Morgan Stanley, an American investment bank and financial services company.

JB Financial said Monday that a stock purchase agreement has been signed to buy a 100 percent stake in Morgan Stanley Gateway Securities (MSGS) based in Hanoi, Vietnam, which has seen an increase in investments in the development of real estate and infrastructure based on stable annual economic growth.

With the acquisition, JB Financial said it would build a new Southeast Asian financial belt covering Cambodia, Myanmar and Vietnam. JB Financial's affiliates include Jeonbuk Bank, Kwangju Bank, JB Woori Capital and JB Asset Management, and two overseas subsidiaries in Cambodia and Myanmar.

"As competition in the domestic financial industry has intensified and growth has slowed, we have acquired a Vietnamese brokerage to diversify the group's revenue sources and generate future profits," said JB Financial CEO Kim KI-hong. The Vietnamese securities firm will focus on financial services about real estate and infrastructure development, convertible bonds for local companies, bonds with warrants and arrangements for mergers and acquisitions.