이 기사는 2020년 03월 17일 08시00분 thebell에 표출된 기사입니다

The race for Prudential Life Insurance is heating up as the final round of bidding is to take place on Thursday. Suitors are making the last-minute dash to be chosen as an exclusive bidder, though there are chances that an auction process could be pushed back due to the impact of the coronavirus.

Private equity bidders in pursuit of Prudential Life Insurance – which is expected to worth trillions of won – have almost finished setting up a financing plan to raise the necessary capital to fund their planned offers, sources familiar with the matter said on March 12.

Each major bidder has teamed up with a brokerage firm to secure financing for its bids. MBK Partners, one of the major bidders for the company, has partnered with Korea Investment & Securities – a surprise move given that the brokerage house has little experience in working on the PE firm’s deals in the past.

As part of its strategy to diversify its customers in the PE industry, Korea Investment & Securities has made continuous efforts to strengthen ties with MBK Partners – one of the key clients in the acquisition finance space – and its efforts seem to have paid off this time. Whether this would lead to a stronger future partnership between the two firms is closely watched, too.

Hahn & Co. is also among the major bidders for Prudential Life Insurance. The firm – which missed an opportunity to snatch up Lotte Card last year due to an unexpected legal issue relating to one of its portfolio companies – is said to have a strong intention to buy the insurance company, heightening competitive tension in the race.

To fund its bid, Hahn & Co. has reportedly teamed up with NH Investment & Securities, which marks the extension of their long-standing partnership. For the past few years, NH Investment & Securities has participated in most of the transactions involving the PE firm’s acquisition financing. Last year the brokerage house provided more than 1.35 trillion won to back funding for deals related to Hahn & Co.’s portfolio companies alone.

Hahn & Co. was the biggest client in the country’s acquisition finance market in 2019. Banks and brokerage firms provided a combined 2.38 trillion won – or more than 20 percent of the total market – to back the PE firm’s deals, with more than 50 percent of that amount arranged by NH Investment & Securities.

IMM Private Equity, which also joined the race for Prudential Life Insurance, is in talks with Woori Bank to secure funding for its bid. This is not a surprise given that IMM PE is the controlling shareholder of Woori Financial Group, the holding company of the bank.

However, market watchers are divided over whether Woori Bank will expand its role beyond a provider of the acquisition financing to invest in the insurance company in partnership with IMM PE. Although there is a view that such a possibility remains open, Woori Financial Group has reportedly yet to make any decisions. Meanwhile, Samsung Securities is said to have joined Woori Bank to provide financing for IMM PE’s bid on Prudential Life Insurance.

(By reporter Han Hee-yeon)