By Kim Jae-won
Mirae Asset Financial Group Chairman Park Hyeon-joo surprised the market once again Monday as the Seoul-based company was set to buy a 60 percent stake in Canadian asset management firm BetaPro Management from its parent company Jovian Capital Corp for around $100 million (106 billion won).
BetaPro is the No. 3 exchange-traded funds (ETFs) management firm in Canada, and handled approximately $3 billion worth as of December. An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks.
A high-ranking official of Mirae Asset confirmed that it is negotiating with Jovian on the deal, and said that it is part of its global business strategy, which Park has focused on.
Mirae has flexed its global muscle striking a few big overseas deals recently.
In May, Mirae Asset Private Equity Fund (PEF) and Fila Korea, a sports clothing maker, emerged as winners to purchase the world’s top golf ball brand Titelist in a bidding contest against Blackstone, a leading asset management firm, and Adidas, the largest sporting goods manufacturer in Europe.
Fila Korea and Mirae Asset signed a deal to buy Acushnet, the owner of Titleist and golf shoe brand FootJoy, from the U.S.-based Fortune Brands for $1.23 billion.
Mirae Asset Global Investments also signed a memorandum of understanding to acquire a 60 percent stake in Taiwan Life Asset Management, a subsidiary of Taiwan Life Insurance, at a cost of $10.5 million in January, which will consolidate its networks in the Chinese-speaking world.
Mirae is considering acquiring asset management companies in Indonesia and Australia too. Analysts say that Mirae is seeking to increase its presence globally with the deals. So far, the company has corporations abroad in India, the U.K., the U.S., and Brazil, following the launch of its Hong Kong venture in 2003.
Park provides a good model for Korean financial companies, especially banks, which are still struggling to expand their influence on the global stage. Park’s courage and audacity to compete with international competitors is something to be noted.
When Park said that he will fight against financial companies in the Wall Street last year, few listened, but now he is proving that he is getting closer to his dream.
Mirae still lags behind global players in terms of reputation and performance but at least Park is trying to narrow the gap.