LS Networks seeks to become largest shareholder in eBest Investment

eBest Investment & Securities Co. building [Courtesy of eBest Investment]

LS Networks Corp. is reportedly considering buying eBest Investment & Securities Co.

According to industry sources on Thursday, LS Networks submitted an application to the Financial Services Commission last month for approval to change the majority shareholder in the securities firm to LS Networks, from the current G&A Private Equity.

The company said it has applied for a review of its major shareholder eligibility. “We’re considering various options, including acquisition,” the company commented.

Currently, the largest shareholder in eBest Investment is G&A Private Equity, which holds a 61.71 percent stake in the brokerage house. LS Networks is the largest investor in the private equity firm, with a 98.8 percent stake.

In 2008, LS Networks invested 101 billion won ($759.4 million) in G&A as a financial investor in the company, as the private equity firm formed a consortium to acquire eBest Investment Securities. Since then, LS Networks has sought buyers on several occasions, but those attempts have yet to bear fruit. The current ownership structure was formed after LS Networks bought additional shares in G&A following the unwinding of some put options by other investors.

As the private equity fund’s maturity approaches in June due to a statutory maximum term for a private equity fund of 15 years under the Financial Investment Services and Capital Markets Act, LS Networks seems to be taking steps to become the largest shareholder. If LS Networks successfully acquires G&S, it will likely take over the entire eBest stake currently held by G&A itself.