South Korean brokerage Bridge Securities Co. Ltd. said on Friday its $13 million deal to buy a stake in Hai Phong Securities Co. (HASECO) (HPC) had broken down because the Vietnamese firm had not met certain preconditions to the sale.
Bridge Securities signed a contract on June 30 to purchase 20 percent of the Vietnamese securities firm for about 12 billion won ($12.9 million) by subscribing to new HASECO shares.
"Not alone lack of cooperation in the due diligence process on Hai Phong Securities, preconditions to participating in its rights offering had not been fully met," the South Korean company said in a filing to the Korea Exchange.
"Despite Bridge Securities' demand to correct them, Hai Phong had failed in fulfilling the contract, so we cancelled the share-purchase contract."
However, Bridge said it will continue efforts to team up with or buy Vietnamese brokerages, without elaborating.
Shares of Bridge Securities tumbled 7.67 percent to close at 6,740 won prior to the disclosure, as Seoul shares had their biggest fall in three years.
Source: Reuters
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