Hana, Lone Star In Talks to Reduce Price

South Korea’s Hana Financial Group and Lone Star are talking about lowering the $4.3 billion acquisition price for a majority stake in Korea Exchange Bank, Reuters said. So far, the deal for Korea Exchange Bank has been beset by regulatory hurdles. The two parties are in talks to extend the deal deadline.

(Reuters) – South Korea’s Hana Financial Group said on Monday it is in talks with U.S. private equity Lone Star to cut the agreed $4.3 billion acquisition price for a controlling stake in Korea Exchange Bank (KEB).

“We are still in talks with Lone Star to extend the deal deadline and one of the negotiation topics includes lowering the acquisition price to reflect recent dividend payout by KEB,” a Hana spokesman said.

KEB’s board members approved on Friday a record 1,510 won a share in quarterly dividend, giving Lone Star a hefty $466 million, as its sales deal with Hana faces uncertainty due to delays in regulatory approval.

(Reporting by Miyoung Kim and Hyunjoo Jin; Editing by Jacqueline Wong)