Tuesday 07 Feb 2012

Government considering splitting Woori Finance stake

The South Korean government is considering splitting its stake in listed Woori Finance into small pieces in order to sell them separately, reported Yonhap News.

The report cited a Woori insider with knowledge of the situation as saying that it would be much more desirable for Woori Finance to be privatized via a merger with another financial firm, but if this is not feasible in the market situation, the government may consider the stake-splitting option.

The report speculated that Korea Deposit Insurance, the state-run holder of a 57% stake in Woori, could sell several 5~10% stakes to different sovereign or pension funds or institutional investors.

Selling smaller portions to the public via market trading was also mentioned as an option, the report added.

A report April 29, stated that the privatization of Woori Finance will likely spill over to next year, citing Jin Dong-soo, the chief of regulator Financial Services Commission (FSC).

See here for all posts on the privatization of Woori Finance.

(Source: Yonhap News)

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