NH Investment & Securities Co surged the most in over three years after NH Financial Group Inc, its parent firm, was named the frontrunner to buy Woori Investment & Securities Co, Bloomberg reported. Woori Finance Holdings Co had said on December 24 that NH Financial Group was the preferred bidder to purchase 38% of the country's biggest broker in terms of assets.

Shares of NH Investment & Securities jumped by up to 12%, the largest intraday gain posted by the firm since July 2010. As of 12:07 AM in Seoul, its shares were trading at 5.1% higher at KRW 5,190.

Midas International Asset Management Ltd Chief Executive Officer Heo Pil Seok told Bloomberg by phone, "Getting Woori Investment will give NH decent scale and a decent investment banking business. Retail investors seem to be the ones rushing to buy NH Investment."

The report quoted a November 28 email from NH Investment as saying that it may "take the lead in terms of scale and competitiveness" in the industry if its parent company acquires Woori Investment. The sale may encourage brokers to merge as the government looks towards forming a national champion and as profits get pinched by rivalry, the report said.

Bloomberg information revealed that NH Investment & Securities Co Ltd provides individual and institutional clients with securities dealing, underwriting, brokerage, and asset managing services. It also gives financial derivatives and cyber trading services.

Citing the group's website, the report said NH Financial has assets worth KRW 255 trillion or $241 billion and has seven affiliate firms. Its business lines are NongHyup Bank, NongHyup Life Insurance, NongHyup Property & Casualty Insurance, NH Investment & Securities, NH-CA Asset Management, NH Capital and NH Investment & Futures, according to its website.

National Agricultural Cooperative Federation wholly owns NH Financial. On December 24, Woori Finance said NH Financial was also selected to purchase Woori FG Savings Bank and Woori Aviva Life Insurance Co.