South Korea’s Hana Financial Group has offered more than 4.5 trillion won ($3.98 billion) for a controlling stake in Korea Exchange Bank, Reuters reported. Hana will buy the stake from Dallas, Texas-based private equity firm Lone Star. The deal is expected to be announced later this week, and will make Hana South Korea’s third largest financial services company by assets.
(Reuters) – Hana Financial Group Inc has offered to buy a controlling stake in Korea Exchange Bank for slightly more than 4.5 trillion won ($3.98 billion), a source told Reuters.
“The deal is mostly over,” a source with direct knowledge of the deal said on Monday, adding that Lone Star and Hana had reached an agreement on pricing.
The source declined to be identified because the matter has yet to be officially announced.
“(Hana) will make an announcement as early as Nov. 24.” the source said.
The deal would mark a major shift in the financial landscape of the country, making Hana South Korea’s third-biggest financial services group by assets.
Hana was carrying out due diligence on KEB to buy a 51 percent stake from private equity firm Lone Star [LS.UL], a move that will scupper the plans of rival bidder Australia and New Zealand Banking Group Ltd .
Analysts said Hana’s move may hold back the $6 billion stake sale process for Woori Finance Holdings Co Ltd because Hana, a potential suitor for Woori, had chosen KEB over Woori.
(Reporting by Ju-min Park; Editing by Chris Lewis)