[Korea goyounghun financial newspaper reporter] Meritz Investment Bank Securities 28 days next month, achieved the 2.3 trillion won capital, and stands one step closer to a large IB.
Meritz Investment Bank Securities is open for 24 days Morning Shareholders' Meeting approved the acquisition of 100% equity capital Meritz agenda. Already last November geuchyeotdeon scale capital at a bar and September 2014, 790 billion won as of the end of the agenda is passed through heralding the recapitalization and capital increase by the Board of Directors is up to about 2.3 trillion won in two years. The approval also received financial situation of the Commission in this regard in January.
Before the merger, together Meritz Investment Bank securities acquired after IM Investment & Securities also said Sudan capital increase of 414.1 billion won scale. This time the argument is that the capital was held by the parent company, Meritz Meritz Financial Group. As of end-December last year, equity capital of Meritz Investment Bank is about 1.87 trillion won at Meritz Securities Equity Capital is about 420 billion won.
Meritz Securities Investment Bank shareholders who oppose this are to exercise the share purchase acquisitions cheonggwon in 3483 won per share, but Yang has formed a day before Meritz Securities shares higher than 3760 won. This pension shareholders did not exercise appraisal rights. Yang Securities Meritz side aspired to a comprehensive approach to protect the stock exchange announced that shareholders avoid diluting shares.
Capital Securities for the share exchange ratio Meritz Securities Investment Bank announced last year is 1: 2.5232069 an exchange price per share was Meritz Investment Bank Securities 3510 won, 8857 won Meritz Capital. When the changes are complete, shareholders holding stake in Capital on, Meritz Securities and Meritz Securities, incorporated as a subsidiary of the holding company and grandchildren should rise to 44.5%.
In Meritz Investment Bank Securities 2016 net profit fell 11.7% YoY 253.8 billion won on a consolidated basis. The earnings decline and collapse of the stock market trading, bond yields rise was the cause. But last year, return on equity (ROE) achieved the number two spot for the third consecutive year since 2014 to 14.4% and was a great save.
When Yang Securities Meritz Securities industry is finishing the next month Meritz Capital acquisition and expect to be able to future synergies. Meritz last year, operating profit increased by 39.8% compared to the previous year Capital to ₩ 58,714,590,000. Meritz Securities in connection with merchant banking business is strong in corporate finance are emerging opinion that they are competitive.
Bob, IBK Investment & Securities researcher said, "Meritz Investment Bank Capital Securities after the acquisition of equity capital growth leads to an increase in securities is expected to have good results in terms of growth potential."
However, if the credit rating of Korea Capital ¥ argument may be a bar to embellish opinion that recapitalization burden. KIS is also concerned, saying that an increase in real estate exposure (exposure amount) due to the capital last month, noted for the contingent liabilities of the Securities Meritz Investment Bank.
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