KDIC may sell more than 10% of Woori Financial Stake sale has drawn stronger interest than expected

Translated by Kim So-in 공개 2021-10-25 07:41:18

이 기사는 2021년 10월 25일 07:38 더벨 유료페이지에 표출된 기사입니다.

State-run Korea Deposit Insurance Corporation (KDIC), which has put a minority stake in Woori Financial Group for sale, may sell more than it initially planned as the deal has garnered stronger interest than expected.

The Public Fund Oversight Committee under Financial Services Commission have allowed 18 candidates that submitted letters of intent for a 10% stake in Woori Financial held by the KDIC to conduct due diligence, industry sources said on Thursday.

Analysts said the sale has drawn strong interest from potential investors at a time the outlook for the financial group is rosy amid rising interest rates and capital improvement prospects.

Fubon Life Insurance, which already owns a 4% stake in Woori Financial, KT Corp, Hoban Construction, Glenwood Private Equity, Eugene Private Equity, eBest Investment & Securities, and KTB Investment & Securities are reportedly among 18 candidates that submitted their letters of intent. Analysts said the strong interest from potential investors may make the KIDC to increase its stake to offload.

“The sale is likely to have garnered strong attention as Woori Financial is expected to record the best performance ever this year and the deal is likely to be completed before a (possible) change of government,” said an industry source. “There is a good chance that the Public Fund Oversight Committee will sell 10% or more.”

The Public Fund Oversight Committee and the KDIC announced that total 10% stake will be sold, with a minimum bidding amount of 1%.

The Public Fund Oversight Committee announced in 2019 that the KDIC will sell its remaining stake in Woori Financial through two or three rounds of sale by 2022. It also said the amount of shares put up for sale in each round will not exceed 10%, given market demand.

With the strong interest from potential investors for the latest sale round, analysts said there is the possibility that more than 10% stake may be sold.

The preferred bidder will be named on November 22. Some market insiders said the sale amount may increase if many bidders submit their final bids.

An owner of 4% or more in the financial conglomerate can also secure the right to recommend a board member. The KDIC owned a 15.25% stake in Woori Financial as of the end of June. If it decides to offload more than a 12% stake in the latest round, a maximum of three buyers will be able to name a board member, who will have a significant impact on the management of the financial conglomerate.

Some market insiders said the KDIC will not sell the entire stake it owns in a bid to achieve its target to retrieve as much public funds as possible. (Reporting by Jang-jun Lee)
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