ID :
188698
Wed, 06/15/2011 - 09:28
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https://oananews.org//node/188698
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Local banking groups likely to bid for Woori Finance: FSC head
(ATTN: UPDATES KB Financial chief's remarks in paras 7-8)
By Lee Minji
SEOUL, June 15 (Yonhap) -- 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 refrained from voicing their interest in bidding. KB Financial Group Inc. Chairman Euh Yoon-dae, who also attended the seminar, said the top banking group does not plan to buy the Woori stake.
Euh said he has not spoken with the FSC chief on the issue, adding that KB Financial also has no plans to take over an overseas lender.
Kim Seung-yu, the chairman of Hana Financial Group Inc., also said earlier in the day that 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.
mil@yna.co.kr
By Lee Minji
SEOUL, June 15 (Yonhap) -- 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 refrained from voicing their interest in bidding. KB Financial Group Inc. Chairman Euh Yoon-dae, who also attended the seminar, said the top banking group does not plan to buy the Woori stake.
Euh said he has not spoken with the FSC chief on the issue, adding that KB Financial also has no plans to take over an overseas lender.
Kim Seung-yu, the chairman of Hana Financial Group Inc., also said earlier in the day that 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.
mil@yna.co.kr
