Carlyle Group, Affinity Equity Offer Funding for Hana Deal

Buyout shops The Carlyle Group and Affinity Equity Partners are interested in funding Hana Financial Group‘s $4.1 billion takeover of Korea Exchange Bank, Reuters reported, citing an article in MoneyToday. Each firm has reportedly offered more than 1 trillion won ($865.7 million) towards the deal.

(Reuters) – Private equity firm Carlyle Group [CYL.UL] and Affinity Equity Partners expressed interest in funding Hana Financial Group Inc’s $4.1 billion takeover of Korea Exchange Bank , local media reported on Wednesday.

Each buyout firm had offered more than 1 trillion won ($865.7 million), online news outlet MoneyToday reported.

Carlyle was in preliminary talks with Hana, source told Reuters in late November.

MoneyToday reported that four foreign private equity funds and two local brokerages had expressed interest.

Hana is accepting letters of intent for its planned $1 billion share sale until year-end and will unveil selected investors in late January.

A Hana spokesman said the company was checking the report.

Hana plans to finance the country’s biggest banking aquisition via internal funds such as dividends from its units, a debenture issue and share offering.

Local private equity firm MBK Partners has proposed up to $1.7 billion to join Hana’s share sale and bond issuance, according to MoneyToday. (Reporting by Ju-min Park; Editing by Chris lewis)