Hanwha Securities Pursues Acquisition of Indonesian Lippo Group Financial Company

Hanwha Investment & Securities announced on the 15th that it held a board meeting and decided to pursue the acquisition of Indonesia's Chiptadana Securities and Asset Management.

Chiptadana Securities and Asset Management is a financial company affiliated with the Lippo Group, the 6th largest conglomerate in Indonesia. Hanwha Investment & Securities plans to acquire 80% of the shares held by Chiptadana Capital. The acquisition contract for the financial company is expected to be signed within this month, and after obtaining approval from the financial authorities of both countries, the acquisition is planned to be completed as early as within this year.

With this acquisition, Hanwha Investment & Securities plans to strengthen its strategy to target the Southeast Asian market, where the digital economy is accelerating. To this end, it also plans to enhance its collaborative relationship with the Lippo Group, which owns various affiliates in real estate, banking, healthcare, and distribution.

This acquisition is also expected to create synergy effects with Hanwha's financial affiliates. Hanwha Life Indonesia, which started operations in 2013, exists, and in March of this year, Hanwha Life Indonesia and Hanwha General Insurance acquired 62.6% of the shares of Lippo General Insurance, a subsidiary of the Lippo Group.

Han Doo-hee, CEO of Hanwha Investment & Securities, stated, “We decided to enter the Indonesian financial market, which has the fourth largest population in the world and an average age of 30, making it familiar with digital technology, as we believe it has great growth potential.” He added, “Following Vietnam and Singapore, we will leap forward as a leading digital financial company in Southeast Asia through our entry into Indonesia.”

Previously, Hanwha Investment & Securities stepped into the Southeast Asian financial market through its overseas subsidiary ‘Pinetree Securities,’ established for global expansion. Starting with the acquisition of local HFT Securities in Vietnam in April 2019, it established a new subsidiary in Singapore in November of the same year.

The Vietnam subsidiary is strengthening its local presence by acquiring new customers through ‘PineX,’ a non-face-to-face platform and investment social networking application. It succeeded in turning a profit starting in 2021, three years after its entry. The Singapore subsidiary is also expanding its global business by discovering promising alternative investment products and unlisted companies in Southeast Asia.

This content was produced with the assistance of AI translation services.