Lone Star, the Dallas, Texas-based fund, is expected to collect 97% of its acquisition funding spent to buy Korea Exchange Bank via dividends and a stake sale, reported Edaily.
The unsourced report said Lone Star had received a total of KRW 888.8bn (USD 761m) via dividends since it acquired Korea Exchange Bank, and got back KRW 1.19tn (USD 1.02bn) from a 13.6% stake sale in 2007.
The total return from the investment in Korea Exchange Bank stands at KRW 2.08tn, representing 97% of its acquisition funds of KRW 2.15tn, it said.
The report added that Korea Exchange Bank decided on 4 August to distribute dividends of KRW 100 per share for 2Q10.
The report noted that Lone Star, which has a 51.02% stake in Korea Exchange Bank, would receive KRW 32.9bn from this cash dividend.
The JoongAng Daily also reported on the story in the English article – ‘Lone Star to recover its purchase price for KEB‘, stating that this interim dividend payout may mean that Lone Star believes the sale of the bank may not take place in the near future.
According to an earlier reports, Lone Star has been seeking to sell its 51% stake in Korea Exchange Bank.
Source: Edaily (translated), JoongAng Daily
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