Efforts by MBK Partners to buy a USD 5bn, 51% stake in Korea Exchange Bank (KEB) from Lone Star Group have failed, according to a 10 August report published in the Business Spectator.
The report, which originally appeared on a wire service, cited sources familiar with MBK’s planning.
According to the report, South Korea-based MBK and Dallas, Texas-based Lone Star Funds declined to comment, while KEB referred inquiries to Lone Star.
The report also said unnamed South Korea-based financiers and officials stated Korean regulators would prioritize the sale of a 57% stake in government-controlled Woori Financial Group.
Meanwhile, an additional source stated Australia and New Zealand Banking Group (ANZ) is KEB’s only suitor and sees KEB as an opportunity to grow its small-and-medium enterprise, foreign exchange and trade finance businesses.
The report noted ANZ CEO Michael Smith helped design an unsuccessful USD 6.3bn KEB takeover when he worked for HSBC.
Neither MBK nor ANZ submitted a bid for KEB by Lone Star’s 26 July deadline, the report added. ANZ declined to comment.
The report cited a source with knowledge of Lone Star’s stake sale efforts, who said chairman John Grayken and KEB CEO Larry Klane seem to be working independently in pursuing the sale, which may be confusing transaction parties.
Furthermore, an additional source stated Klane solicited a stake bid from KB Financial Group chairman Euh Yoon-dae last month, but Yoon-dae declined to make an offer, the report said.
The report relayed source speculation that KB may be able to consider an acquisition after addressing Yoon-dae’s stated priorities of cutting costs and boosting earnings.
The report also cited an anonymous South Korea-based banker, who characterized Lone Star’s current efforts to sell the stake as being affected more by South Korean politics than business issues.
MBK was aware of the South Korean government’s potential bias against buy-out firms before embarking on uniting South Korean government pension funds, sovereign wealth funds and Japan-based Nomura Holdings in its acquisition effort, the report added.
Source: Business Spectator
More From privateequitykorea
No related posts.
