Aside from KB Financial Group and Korea Investment Holdings, which jumped into the race simultaneously on Feb. 16, four private equity firms have taken part, including Seoul-based Pinestreet and foreign-based Actis. They are now conducting due diligence on the brokerage firm and are expected to make a final offer, if still interested, in the fourth week of March, the sources said. Hyundai Group said earlier that it wants to complete the process by the end of the month.

This is the second time that the group is trying to sell the unit after last year’s negotiations with Orix fell through amid rumors that the two had a secret arrangement to later return the unit to Hyundai Group. The Japanese fund had offered to pay 660 billion won for a stake of 22.4 percent.

Experts see brighter prospects for a deal this time, citing the cheap price and the parent group’s strong intention to secure cash through a sale.

Last week, shareholders of Hyundai Elevator, which has the right of first refusal on the Hyundai Securities stake, laid out conditions for exercising the right to clear any hurdle for a potential deal.

Under the agreement, Hyundai Elevator will make public the price it is willing to pay for the stake before the six bidders make their final offers. If the preferred bidder picked bids below its level, the elevator firm will use the right, preempting the sale. In the opposite case, it will do nothing.

Local reports said the amount Hyundai Elevator would pencil in is around 650 billion won.

“Price is the biggest appeal (of Hyundai Securities),” said Son Mi-ji, analyst at Seoul-based Shinhan Investment Corp.

Considering that KDB Daewoo Securities was sold for 2.4 trillion won late last year, Hyundai Securities should be attractive, since a controlling stake can be acquired in a major securities firm with equity capital of 3.3 trillion won for about 700 billion won, she said.

KB Financial and Korea Investment Holdings, which both run their own brokerage houses, are seeking expansion in the securities sector through mergers and acquisitions. Both bid for control of KDB Daewoo late last year. Pinestreet was beaten by Orix in the previous Hyundai Securities sale.

By Lee Sun-young (milaya@heraldcorp.com)