ANZ Banking Group, the ASX-listed bank, is thought to be close to acquiring Lone Star’s 51% stake in Korea Exchange Bank, the Korean bank, the Australian Financial Review reported.
According to the report, which did not cite sources, ANZ is believed to be in the last stages of due diligence on the AUD 4.7bn (USD 4.3bn) stake and is likely to announce a result later this month. ANZ may also buy a 6% stake in KEB, which is being sold by Korea Exim Bank, the report said.
The report said that ANZ’s due diligence on KEB would likely help the company evaluate its Asian strategy.
Also reporting on the story, the Korea Herald stated -
The Australia and New Zealand Banking Group is sending a team of inspectors to the Korea Exchange Bank as early as next week, proceeding with its bid to take over Korea’s fifth-largest lender.
Industry sources confirmed Tuesday that the ANZ will analyze the Korean lender headquartered in Seoul, which would be the first on-site evaluation of the company up for sale since 2006.
“Korea is one of the leading-value added manufacturing and export-driven economies in Asia, it has rapidly growing trade ties to the region … and it is now Australia’s third-largest trading partner. This opportunity specifically leverages Korea’s connectivity with the rest of Asia and KEB‘s leading position in foreignexchange and in trade finance,” ANZ chief Mike Smith said as he announced the bank’s third quarter results.
“Some people have questioned whether this (acquisition of KEB) fits our super-regional strategy, and I think it unquestionably does,” Smith said.
“ANZ’s firm stance on the acquisition of KEB came after a long pause and the deal is expected to proceed quickly when the Australian team visits Seoul,” Seo Young-soo, a Kiwoom analyst said.
“ANZ was hesitant about the deal not because it was unsure about the value of the KEB, but because of the uncertainties in the global financial industry. Their (ANZ) proclaim of the deal most likely means that they’re ready (for the purchase),” he added.
ANZ is expected to decide by mid-October whether to bid for a majority in the KEB, worth about $4 billion, according to Reuters.
An ANZ spokesman declined to comment.
See here for more stories on Lone Star’s sale of its stake in KEB.
Sources: Australian Financial Review, Korea Herald
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