ID :
188641
Wed, 06/15/2011 - 06:05
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https://oananews.org//node/188641
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Local banking groups likely to bid for Woori Finance: FSC head
South Korean financial holding companies are expected to bid for a controlling stake in state-run Woori Finance Holdings Co., the top financial regulator said Wednesday, dismissing concerns that the much-awaited sale of the group will flop due to an absence of bidders.
The government is pushing to privatize the country's No. 2 banking group after it suspended the deal worth around US$6 billion to sell its 56.96 percent last December due to a lack of investor interest.
On Tuesday, Financial Services Commission (FSC) Chairman Kim Seok-dong said it is not desirable for KDB Financial Group Inc., another state bank holding firm and a prospective buyer, to bid for the stake in Woori Finance.
Kim's remarks have prompted worries that the sale may hit another snag since other major banking groups have not openly expressed interest in buying Woori Finance. The deadline to submit letters of intent is June 29.
"A valid competition is feasible," Kim told reporters at a local seminar, stressing that local banking groups will likely bid for the majority stake in Woori Finance.
Kim also reaffirmed the regulator's plan to privatize the No. 2 banking group is unchanged.
Meanwhile, major banking groups have been refraining from voicing interest in the bidding. On Friday, KB Financial Group Inc. Chairman Euh Yoon-dae said the top banking group is still not interested in buying Woori Finance.
Kim Seung-yu, the chairman of Hana Financial Group Inc., also said earlier in the day the No. 4 banking group has not considered taking part in the Woori bid.
South Korea pumped 12.8 trillion won (US$11.8 billion) in taxpayers' money into Woori Finance in a desperate attempt to save the company from near bankruptcy in the aftermath of the 1997-98 Asian financial crisis.
The government is pushing to privatize the country's No. 2 banking group after it suspended the deal worth around US$6 billion to sell its 56.96 percent last December due to a lack of investor interest.
On Tuesday, Financial Services Commission (FSC) Chairman Kim Seok-dong said it is not desirable for KDB Financial Group Inc., another state bank holding firm and a prospective buyer, to bid for the stake in Woori Finance.
Kim's remarks have prompted worries that the sale may hit another snag since other major banking groups have not openly expressed interest in buying Woori Finance. The deadline to submit letters of intent is June 29.
"A valid competition is feasible," Kim told reporters at a local seminar, stressing that local banking groups will likely bid for the majority stake in Woori Finance.
Kim also reaffirmed the regulator's plan to privatize the No. 2 banking group is unchanged.
Meanwhile, major banking groups have been refraining from voicing interest in the bidding. On Friday, KB Financial Group Inc. Chairman Euh Yoon-dae said the top banking group is still not interested in buying Woori Finance.
Kim Seung-yu, the chairman of Hana Financial Group Inc., also said earlier in the day the No. 4 banking group has not considered taking part in the Woori bid.
South Korea pumped 12.8 trillion won (US$11.8 billion) in taxpayers' money into Woori Finance in a desperate attempt to save the company from near bankruptcy in the aftermath of the 1997-98 Asian financial crisis.
