Japanese private equity firm Orix's efforts to buy Hyundai Securities came to nothing. The securities' largest shareholder Hyundai Merchant Marine said, "Trading deal concerning to Hyundai Securities was canceled," in its regulatory filing. According to financial experts, Orix told Hyundai it would not extend the contract period for its takeover. Orix said, "Regarding a Japanese firm's attempt to buy a Korean securities, there have been many speculations and criticisms and we felt pressured for that." With the attempt wounding up in failure, Hyundai Securities now faces a challenge for its rehabilitation plan of Hyundai Securities, market insiders said. In December of 2013, Hyundai Group announced its rehabilitation plan worth a total of 3.3 trillion won to overhaul its financial structure. So far, the company carried out around 2.9 trillion won out of the plan. If the sell-off of Hyundai Securities went as planned, they would have completed the plan. Hyundai Group is reportedly to complete the plan by issuing permanent convertible bond valued at 300 billion won through Hyundai Bulk Line, a subsidiary of Hyundai Merchant Marine. 저작권자 © Korea IT Times 무단전재 및 재배포 금지
Orix Corp has given up its bid to acquire Hyundai Securities , without explaining its reasons . Hyundai Group is undergoing renewed efforts to reduce its debt and is looking to sell its securities portfolio as part of this ongoing plan . Analysts suggest that Orix backed out due to negative publicity surrounding the deal . It is expected that investment Securities will meet with Korea Development Bank , who was overseeing the acquisition , to devise a new plan .