SK Holdings Co. has sold its 10 percent stake in SK Securities Co. to South Korean private equity firm J&W Partners for 51.5 billion won ($47.9 million) to abide by a law prohibiting a general holding company from owning a stake in a local financial company.

J&W Partners is said to have vowed to keep the SK Securities’ staff intact to minimize confusion after the acquisition and ensure smooth operations. SK Securities’ chief executive Kim Shin and several other executives are also known to have participated as joint investors and are expected to continue their management role, according to investment banking sources on Monday.

“When considering job stability and the future growth of the company, this decision appeared to have the least impact on our stakeholders and the market,” said an official from SK Holdings.

Industry insiders say CEO Kim had been mulling various options to acquire the shares himself after SK Securities was put up for sale in 2015.

The deal would be finalized once it is given the go-ahead from the Financial Services Commission.

SK Holdings had been seeking to unload its stake in the financial arm to comply with holding company regulations under the fair trade act that prohibits a general holding company from owning a stake in a financial company.

Last August, it signed a share purchase agreement with a consortium led by Cape Investment & Securities but the talks fell through in January when the consortium withdrew its bid after authorities found it financially unfit to become a major shareholder.

By Jin Young-tae and Kim Hyo-jin

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