Warren Buffett's General Re to bid for South Korea's Tong Yang Life: report
28 December 2011
General Re, a unit of Warren Buffett's Berkshire Hathaway Inc, is planning to bid for a majority stake in South Korea's Tong Yang Life Insurance South Korean business paper MoneyToday reported, citing officials with knowledge of the matter.
Tong Yang's majority shareholder private-equity firm Vogo Fund is planning to sell its up to a 60.7-per cent stake in the insurer valued at about 937 billion won ($809 million).
It said General Re has signed a confidentiality agreement with Tong Yang for the deal, the paper said
Vogo Fund, which has hired Credit Suisse, Daiwa Securities and Woori Investment & Securities for the auction to be held in January, had initially bought a 17-per cent stake in Tong Yang Life in 2006 and acquired an additional 46.5 per cent stake in 2010 for KRW900 billion ($798 million).
Life insurance companies such as Korea Life, Prudential Life insurance and financial holding companies such as Woori are also seen as potentials suitors.