Avantgarde Capital - The Best Boutique Investment Bank in Indonesia: Financial Adviser, M&A, IPO, Private Equity , Corporate Restructuring, and Deals

KB Securities & Valbury

Date of Completion

February 2022

 

Deal Type

Strategic acquisition of one of the top-tier securities firms in Indonesia, PT Valbury Sekuritas Indonesia, and its asset management subsidiary PT Valbury Capital Management, by KB Securities Ltd. through a combination of subscription of primary shares and purchase of vendor shares.

Companies Description

KB Securities Ltd ("KBS")

As one of Korea’s largest securities and investment banking firm in Korea, KBS has an equity capital of KRW 4.7 trillion and offers total financial investment services in four business segments consisting WM, S&T, IB and Wholesale. KBS is the first Korean securities firm to obtain ‘All Stable’ from 3 global credit rating agencies with solid ratings (A- in Global and AA+ in local). KBS is a household name in its home market with 4.12 million client base and extensive network of 108 branches and sub-branches nationwide, managing over 2,740+ employees.  It has been ranked number 1 in Debt Capital Market in Korea for eight consecutive years and Winner of Grand Prize for Client Satisfaction Management in Securities for 15-straight years. 

KBS is wholly-owned by KB Financial Group (“KBFG”), the largest Korean financial services group offering a broad range of financial products and services. As of Dec 2021, KBFG’s total asset was KRW 663.9 trillion . KBFG is listed in NYSE and KRX with a market cap of USD c.18 billion.

PT Valbury Sekuritas Indonesia ("VSI")

With more than 20 years of track record, VSI is one of the leading securities houses in Indonesia with full equity brokerage, online trading, fixed income, investment banking and research services. Separately, it also owns an asset management business through Valbury Capital Management (“VCM”). VSI has a large and diversified customer base with over 13,000 institutional and retail clients. VSI booked a total transaction value of USD7.45bn in 2021 and ranked 5th in terms of transaction volume.

Our Role and Value-Added Services

Avantgarde Capital acted as financial advisor to KBS in the strategic acquisition of a majority stake in both VSI and VCM by way of a combination of primary shares subscription and secondary shares purchase. KBS is expanding its overseas businesses and networks as part of its long-term global strategy under direct management by the CEO. It has established its global network in New York, Hong Kong, Shanghai and Vietnam. Indonesia is one of KBS’ top priority market outside Korea, and Avantgarde has been trusted to advise KBS in its analysis and strategic entry into the Indonesian capital market. 

Avantgarde assisted and advised KBS from the Indonesian market education and targets identification to the OJK approval and closing of the transaction.  We assisted KBS in initiating original ideas and approaching the potential targets, providing valuable insights on the targets and the shareholders’ intention, structuring and proposing suitable transaction structure which may optimally achieve KBS’ objectives.  We also helped KBS in formulating the strategy and approach based on our deep connections within the industry, local knowledge and experience and acting as liaison in negotiations with the key Shareholders. In addition, we coordinated the due diligence process and managed the workstreams to ensure the transaction was well executed and met the target timetable.  In closing phase, Avantgarde also advised KBS in addressing the key aspects during the Fit and Proper test and securing OJK’s approval.