Private Equity Korea » KDB

KDB Financial inks deal to takeover HSBC units

Stephanie Lim — Wed, 28 Dec 2011 01:07:51 +0000

According to Yonhap News Agency, Korea’s state-run KDB Financial Group has signed a preliminary agreement with British bank HSBC Holdings Plc on the takeover of the latter’s ten local branches.

“Efforts to acquire HSBC branches are going smoothly following the signing of a memorandum of understanding,” KDB Financial Chairman Kang Man-soo told reporters on December 27.

As we mentioned last week, KDB’s acquisition of retail banking units may lead to the discussion of an IPO in 2012.

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Korean IPOs on the horizon in 2012

Ross Geesman — Fri, 23 Dec 2011 06:43:56 +0000

Expect a steady flow of Korean IPOs in 2012, says this article from the Financial Times and dealReporter.

Subsidiaries of conglomerates such as Samsung, LG, SK and Lotte Group will be offering up shares due to large amounts of corporate bonds maturing in 2012 and companies’ needs for liquidity to fuel expansion plans.

The article also mentions a possible IPO from publicly-owned Korea Development Bank. KDB may try to add consumer banking services to boost its valuation and some have reported that it may buy HSBC’s retail banking units.

The article also explains that many Korean companies are looking into overseas IPOs as an aid to operations abroad, with many eyeing Hong Kong as a potential bridge to the Chinese market.

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KDB acquires RBS unit in Uzbekistan

Stephanie Lim — Thu, 15 Dec 2011 07:19:45 +0000

Maeil Business News has reported that South Korea’s state-run Korea Development Bank (KDB) has successfully acquired the Uzbekistan unit of the Royal Bank of Scotland Group (RBS Uz). KDB and RBS had signed a share sale agreement in December 2010 for an 82.35 percent stake in RBS Uz.

KDB plans to merge RBS Uz with its UzKDB Bank to establish itself as the largest foreign bank in Uzbekistan by 2012. This is expected to benefit Korean firms by offering better financial support to Korean units doing business in Uzbekistan. Furthermore, KDB’s success in Uzbekistan will allow it to gain traction into the rest of central Asia’s financial market.

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Korean fund buys gas assets from Apache

Stephanie Lim — Mon, 12 Dec 2011 06:11:11 +0000

MarketWatch has reported that a private equity fund led by South Korea’s government-owned Korea Development Bank (KDB), and including the country’s top oil refiner SK Energy Co., has acquired gas assets from U.S. Apache Corp. for $200 million.

The fund used $65 million of acquisition financing from BNP Paribas SA and Union Bank to buy a 21.9 percent stake in Patara Oil & Gas LLC, a gas and oil field development firm in the U.S., through a rights offering in May and the $50 million investment back then became part of the fund acquiring the gas assets.

“The latest investment comes at a time when competition to secure resources is intensifying globally, and will be a good example to show the growth potential of local private equity funds in the global resources development market,” KDB said.

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KDB looking to acquire HSBC retail banking units

Stephanie Lim — Sun, 09 Oct 2011 00:16:19 +0000

Maeil Business News has reported that state-run KDB Financial Group has been showing interest in taking over HSBC’s retail banking units in Seoul. Although both parties said they were unable to comment on market rumors or speculation, industry watchers claim KDB is conducting a thorough investigation to weigh the benefits of the takeover. HSBC, which announced intentions to sell its retail units this past September, welcomes this potential deal.

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KoFC to create 100 bn won Green Fund

Stephanie Lim — Thu, 08 Sep 2011 08:56:55 +0000

The Korea Finance Corporation (KoFC) has announced plans to begin selecting management firms for its second Green Fund by the end of this year. The selection criteria and schedule have not yet been finalized, but they are expected to be similar to last year’s Green Fund. However, the second Green Fund will be double in size to 100 bn won.

In July 2010, the KoFC formed a 50 bn won Green Fund called the “Green Industrial Investment Partnership”. The KoFC contributed 47 bn won of the funds, and the remaining 3 bn won came from the GPs; KDB Asset Management and Samho Green Investment. Thus far, the Green Fund has exhausted 80 percent of its capital.

Source: translated from The Bell

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KDB and TStone invest in Daekyung O&T

Stephanie Lim — Fri, 26 Aug 2011 06:09:11 +0000

On August 25, Korea Development Bank (KDB) and TStone announced that they have signed an agreement with Daekyung Oil & Transportation to acquire a 26.3 percent stake in the refiner of animal fats and vegetable oils for 500 billion won.

Daekyung O&T has had continuous growth since its establishment in 1995 and its total revenue in 2011 is expected to exceed 200 billion won. The company has recently entered the biodiesel business and is planning an IPO for 2013.

KDB and TStone’s contribution will be used to expand into overseas markets and to develop further into the biodiesel industry.

Source: Translated from The Bell

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POSCO-Samsung and CJ battle over Korea Express

Stephanie Lim — Tue, 28 Jun 2011 02:29:46 +0000

According to JoongAng Daily, the POSCO-Samsung SDS consortium submitted its final bid for Korea Express yesterday, officially pitting itself against CJ Group for the 37.6 percent stake sale, while Lottle Group dropped out of the bidding. If the POSCO-Samsung SDS consortium wins the purchase, POSCO is to receive a 5 percent share and Samsung SDS will own the rest.

According to Reuters, the stake is worth about 1.1 trillion won ($1.0 billion) at the current market value. The article added that the lead managers of the sale, Korea Development Bank, Nomura, and Daewoo Securities, are likely to select a preferred bidder on Tuesday, June 28.

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FSC ousts KDB from Woori sale

Stephanie Lim — Wed, 15 Jun 2011 02:14:17 +0000

Several local news media outlets have published headlines stating that the FSC has publically announced that KDB will not be allowed to bid for the 56.97 percent share of Woori Finance Holdings.

JoongAng Daily reported that, at a National Assembly committee hearing on June 14, FSC Chairman Kim Seok-dong said the government barred KDB from making a bid due to “the current lack of public consensus” about KDB’s participation.

This new development in the ongoing Woori saga will increase the likelihood that the FSC will get approval for their legislative amendment for easing bank ownership. Now that a KDB-Woori merger is out of the picture, the regulators are free from the fierce public opposition that surrounded the sale.

The FSC chairman also emphasized that the privatization of Woori Finance is not only about recovering public funds, but also about the creation of a large banking institution that would help develop the domestic industry. He added that the Woori sale is still open to all local and foreign bidders other than KDB.

Unfortunately, no other bidder has shown interest in the sale. KB Financial Group was once considering the purchase, but has withdrawn from the running, explaining that a merger between the two companies would be undesirable.

The KDIC will be accepting LOIs until June 29.

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KDB Financial may be out of running for Woori acquisition

Stephanie Lim — Thu, 09 Jun 2011 10:38:41 +0000

Maeil Business News has reported that KDB Financial Group, the most viable bidder in the auction for Woori Finance Holdings, is pressing the local government to make a timely decision on an amendment to the legislature that would allow KDB to acquire Woori.

As mentioned in a previous post, current legislation requires that, when a financial holding company purchases another financial holding company, the former must acquire 100 percent of the latter. The pending amendment would lower the purchase requirement to a minimum 51 percent stake.

According to the report, a high-ranking official of KDB has asked the government to publish a final ruling on the matter by June 29, which is the deadline for submissions of LOIs (letters of intent) to partake in the Woori auction.

However, both the potential acquisition and the proposed amendment have seen significant opposition from the labor unions of KDB and Woori, as well as from the Grand National Party.

If the relevant regulation is not changed, KDB would be unable to make a bid and the government’s second attempt at selling Woori would likely fail.

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