Nomura Holdings is in talks to join private equity firm MBK Partners in its pursuit of the $3.5 billion Korea Exchange Bank stake up for sale, according to a Reuters report.
Sources said the discussions were in their early stages and no decision had been made. Joining forces with MBK was only one of several options being considered by Nomura, a source said.
Neither Nomura, MBK, nor sale advisor Credit Suisse commented on the reports.
Should Nomura pursue a joint bid, however, it would be a bold move by Japan’s top brokerage and a major development in the KEB auction process that has otherwise gotten off to a slow start.
As previously reported, U.S. private equity firm Lone Star is, for a third time, auctioning its 51 percent stake in KEB. The auction has yet to produce a public offer, but some parties, including Australia and New Zealand Banking Group, have expressed interest.
The sale of foreign exchange-focused KEB had been expected to fetch more than $4 billion but has showed slow progress so far, with major local banks remaining inactive.
Sources have previously said that MBK, with experience investing in South Korea, is interested in bidding for the stake. The firm was expected to seek the help of a corporate buyer, as the stake up for grabs is almost as large MBK’s total assets under management.
While Nomura, with a near $22 billion market value, could act as a lender for such a transaction, sources said on Monday the Japanese brokerage may end up being a co-investor.
Source: Reuters
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