MBK Partners offers $1.73B to Fund Takeover of KEB

Buyout shop MBK Partners said it would invest up to 2 trillion won ($1.73 billion) in Hana Financial Group’s buyout of Korea Exchange Bank, Reuters said, citing a report in online news outlet MoneyToday. The fund said it would create a consortium of investors including National Pension Service to help fund the $4.1 billion acquisition of KEB.

(Reuters) – Private equity fund MBK Partners has offered to invest up to around 2 trillion won ($1.73 billion) in Hana Financial Group Inc’s (086790.KS) takeover of Korea Exchange Bank (KEB) (004940.KS), local media reported on Friday.

The buyout fund told Hana it would gather a group of investors including National Pension Service to join Hana’s rights offering and bond issuance to partially fund its $4.1 billion acquisition of KEB, online news outlet MoneyToday reported.

A Hana spokesman said the company was open to all investors but declined to confirm the report. MBK Partners was not available for comment.

Meanwhile, a National Pension Service official said the pension fund had not received any proposal from MBK Partners.

Hana has said it plans to finance the country’s biggest banking acquisition via a rights issue, debentures and internal funds.

Hana Chairman Kim Seung-yu said earlier that Hana might consider partnering with private equity funds if they met certain conditions.

For its planned $1 billion rights offering, Hana is receiving expressions of interest from potential investors until year-end.

China Investment Corp, China Merchants Bank Co Ltd (3968.HK) (600036.SS) and Japanese banks are among investors Hana is considering.

($1=1155.0 Won) (Reporting by Ju-min Park; Editing by Chris Lewis)