South Korean company to increase its holding in Vietnamese joint venture securities company pursuant to Circular No. 60.
Korea Investment & Securities (KIS Korea) has announced its intention to increase its ownership in its joint venture with Vinatex and other shareholders, the KIS Vietnam Securities Corporation, under Circular No. 60, which took effect on September 1 and allows for 100 per cent foreign ownership in listed companies.
Mr. Yun Hang Jin from KIS Korea told local media that the company is preparing to increase its ownership from 4.82 per cent to 94 per cent, with the remaining 6 per cent being held by individual investors.
As for increasing its ownership to 100 per cent, Mr. Yun said that owning 94 per cent will give it control over KIS Vietnam so there is no need to secure 100 per cent.
Vietnam is considering day-trading activities in its stock market, but only securities companies with sufficient capital will be able to take part. Many small securities companies will therefore be looking at mergers and acquisitions (M&As) to meet the capital requirements. Mr. Yun said that KIS Vietnam had sufficient capital to become involved in day-trading but would carefully consider any M&A deal that would benefit the company.