KGI Securities acquires Indonesian counterpart

KGI Securities, one of Taiwan’s leading brokerages, has completed a deal to acquire a 99 percent stake in its Indonesian counterpart PT Hasta Dana Securities Indonesia (HDSI) from PT HD Capital.

KGI Securities, a securities arm of China Development Financial Holding Co. (???), said that the transaction was completed in cash on Wednesday after the brokerage secured regulatory approval from Taiwan and Indonesia.

The transaction, which was conducted through KGI Securities’ Hong Kong subsidiary KGI Capital Asia, was valued at NT$200 million (US$6.31 million), the Taiwanese brokerage said. The acquired Indonesian brokerage will be renamed PT KGI Sekuritas Indonesia.

According to KGI Securities, HDSI owns brokering and underwriting licenses in Indonesia and currently is one of the members of the Indonesia Stock Exchange.

Among the 120 securities firms in Indonesia, HDSI took 47th place in terms of the stock brokering business in the country as of the end of July, KGI Securities said.

KGI Securities announced the deal in late 2015, aiming to expand its overseas reach and boost its earnings in overseas operations, which is expected to strengthen its overall profitability.

On its website, China Development Financial said that KGI Securities, which is one of the brokerage pioneers in Taiwan to extend its business in foreign markets, has set up footholds in Hong Kong, Thailand and Singapore, and its overseas operations accounted for more than 20 percent of the brokerage’s total earnings.

KGI Securities has also signed a memorandum of understanding on cooperation with South Korea’s Samsung Securities.

After the acquisition of HDSI, KGI Securities said, the brokerage will use Hong Kong as a hub to continue to extend its reach overseas by linking the Greater China market and the Association of Southeast Asian Nations (ASEAN) market.

In addition, KGI Securities said, the deal to acquire HDSI is expected to help its parent China Development Financial seek investment opportunities in Indonesia, such as banking, wealth management, and insurance. The brokerage said that China Development Financial aims to acquire more assets in Indonesia in a bid to boost its visibility in the ASEAN market.

Source: Focus Taiwan News Channel