Hana Financial to buy controlling stake in Korea Exchange Bank for $4.1 billion
25 Nov 2010
South Korea's Hana Financial Group, yesterday said that it is acquiring a controlling 51.02-per cent stake in Korea Exchange Bank from US private equity group Lone Star Funds, for 4.69 trillion won ($4.1 billion).
The purchase ends years of legal wrangling to sell Seoul-based Korea Exchange Bank that specialises in foreign exchange, but also shuts off the prospect of a rival bid from Australia and New Zealand Banking Group (ANZ), which had been evaluating Korea Exchange Bank's books for the past three months.
After being caught off-guard, ANZ decided not to enter into a bidding war and today said in a statement that it would not make a competing offer.
Hana had late last week announced that it has signed a tentative deal with Lone Star, which the board of Hana approved yesterday.
In making its biggest ever acquisition, Hana, will pay 4.7 trillion won in cash for Lone Star's 51.02-per cent stake in S Korea's fifth-largest lender.
The acquisition will make Hana the third-largest financial institution in South Korea, said Hana in a statement. Its two bigger rivals are after Kookmin Bank and Woori Bank.
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