이 기사는 2020년 03월 06일 08시00분 thebell에 표출된 기사입니다

South Korea’s private equity (PE) firm JC Partners has set its funding plan for the acquisition of MG Non-Life Insurance ahead of the eligibility screening of the large shareholder.

According to industry sources on Tuesday, JC Partners has submitted supplementary documents for the eligibility screening of the large shareholder to South Korea’s Financial Supervisory Service (FSS) on February 2. The FSS is expected to start the screening process in earnest soon.

The FSS received and reviewed documents from the PE firm for the screening in November 2019, but later requested supplementary documents. In accordance with the FSS’ request, the PE firm submitted the supplementary documents including changes in limited partners and proof of funds.

The FSS will resume the screening process and is expected to refer the case to the Financial Services Commission (FSC) in mid-March. Market watchers say that the eligibility screening of the large shareholder on MG Non-Life Insurance may be one of the agenda items at the FSC’s general meeting on March 18.

JC Partners has been raising funds to create a 100 billion won worth project fund to acquire MG Non-Life Insurance and carrying out capital increase of 100 billion won to boost its risk-based capital (RBC) ratio.

It is said that the country’s financial authority has had some doubts on the financial strength of Rich Planner Consulting, one of JC Partners’ limited partners. So JC Partners has reduced Rich Planner Consulting’s commitments to 20 billion won from 40 billion won and submitted supplementary documents to prove funds in addition to the letter of commitment (LOC) by Rich Planner Consulting. Korea Federation of Community Credit Cooperatives (KFCC) and Woori Bank also promised to commit 30 billion won and 20 billion won respectively to the fund.

JC Partners also has diversified its limited partners. The PE firm received LOC from Acuon Capital (20 billion won) and Aju Capital (10 billion won) on Monday and submitted all the required documents for the screening to the financial authority on the same day. Separately, Woori Bank is arranging acquisition financing worth 100 billion won for the insurer’s capital increase.

(By reporter Rho Ar-rum)