Hana Financial Group plans to extend the deadline for a $1 billion share sale designed to help fund its $4.1 billion acquisition of Korea Exchange Bank, Reuters reported. The firm, which is buying the bank from private equity firm Lone Star, plans to accept letters of interested until mid-January. Reuters also said private equity firms the Carlyle Group, Corsair Capital and MBK Partners have submitted letters of interest to buy the shares.
(Reuters) – South Korea’s Hana Financial Group will extend the deadline for expressions of interest in a $1 billion share sale to help fund its planned acquisition of Korea Exchange Bank (KEB) for about two weeks, a spokesman said on Monday. The share sale is part of Hana’s plan to finance the country’s biggest banking acquisition. “We will accept (letters of interests) around by mid-January to give potential investors more time, given the year-end holiday season,” the spokesman said.
A source with knowledge of the share sale told Reuters that private equity firms Carlyle Group, Corsair Capital and MBK Partners have submitted letters of interest to buy the shares. The source declined to give further details. Local media reported earlier that Carlyle had offered more than 1 trillion won ($868.1 million).
Hana has agreed to buy a 51 percent stake in local peer KEB for $4.1 billion from U.S. fund Lone Star. It has also agreed to pay a year-end dividend of 279.7 billion won or 850 won per share. If Lone Star receives less than 850 won per share in its year-end dividends, Hana will pay Lone Star the difference, according to a revised regulatory filing by Hana. Shares in Hana were flat, while KEB shares rose 1.6 percent in a Seoul market down 0.3 percent. The country’s fourth largest financial services firm by assets expects to close out the KEB takeover deal in February.
(Reporting by Ju-min Park; Editing by Lincoln Feast and Yoo Choonsik)