ID :
191790
Wed, 06/29/2011 - 13:23
Auther :
Shortlink :
https://oananews.org//node/191790
The shortlink copeid
Three bidders show interest in Woori Finance
(ATTN: UPDATES with more info from para 5)
SEOUL, June 29 (Yonhap) -- Three prospective bidders expressed interest in buying a controlling stake in Woori Finance Holdings Co., a government agency said Wednesday, raising hopes the stalled privatization of the state-owned banking group may resume.
The government had invited potential buyers to submit their letters of intent for the 56.97 percent stake in the country's No. 2 banking group, as part of its efforts to privatize companies that were bailed out with taxpayer money in the aftermath of the 1997-98 Asian financial crisis.
The Korea Deposit Insurance Corp., which manages the stake sale, said three institutions submitted their letters of intent, but declined to identify them.
Major banking groups, however, did not submit letters of intent for the Woori stake, it said.
Industry sources said three local private equity funds -- Vogo Fund, MBK Partners and TStone Corp. -- submitted preliminary bids for Woori Finance. TStone was founded by chief executive Won Joon-hee, a former managing director at Salomon Smith Barney Korea, and Min Euoo-sung, a former head of state-run KDB Financial Group Inc., is seated as the fund's chairman, according to its Website.
The invitation of preliminary bids came after the Financial Services Commission (FSC) recently scrapped its plan to sell the No. 2 banking group to KDB Financial Group Inc. due to strong public criticism.
The government's efforts to find a private owner for Woori Finance fell through in 2010 due to lukewarm interests from investors.
The committee, which oversees sales of state-owned assets, said that since more than two investors expressed intent to buy the group, the process of inviting preliminary bids met conditions for competitive bidding.
The financial watchdog earlier said it plans to pick a preferred bidder by September.
South Korea injected 12.8 trillion won (US$11.8 billion) of taxpayers' money into Woori Finance in a bid to rescue the company from near bankruptcy.
The sale of Woori Finance is one of the top priorities pushed by the government of President Lee Myung-bak as part of its broader plans to privatize financial institutions, including state-run Korea Development Bank, to raise competitiveness in the financial sector.
mil@yna.co.kr
SEOUL, June 29 (Yonhap) -- Three prospective bidders expressed interest in buying a controlling stake in Woori Finance Holdings Co., a government agency said Wednesday, raising hopes the stalled privatization of the state-owned banking group may resume.
The government had invited potential buyers to submit their letters of intent for the 56.97 percent stake in the country's No. 2 banking group, as part of its efforts to privatize companies that were bailed out with taxpayer money in the aftermath of the 1997-98 Asian financial crisis.
The Korea Deposit Insurance Corp., which manages the stake sale, said three institutions submitted their letters of intent, but declined to identify them.
Major banking groups, however, did not submit letters of intent for the Woori stake, it said.
Industry sources said three local private equity funds -- Vogo Fund, MBK Partners and TStone Corp. -- submitted preliminary bids for Woori Finance. TStone was founded by chief executive Won Joon-hee, a former managing director at Salomon Smith Barney Korea, and Min Euoo-sung, a former head of state-run KDB Financial Group Inc., is seated as the fund's chairman, according to its Website.
The invitation of preliminary bids came after the Financial Services Commission (FSC) recently scrapped its plan to sell the No. 2 banking group to KDB Financial Group Inc. due to strong public criticism.
The government's efforts to find a private owner for Woori Finance fell through in 2010 due to lukewarm interests from investors.
The committee, which oversees sales of state-owned assets, said that since more than two investors expressed intent to buy the group, the process of inviting preliminary bids met conditions for competitive bidding.
The financial watchdog earlier said it plans to pick a preferred bidder by September.
South Korea injected 12.8 trillion won (US$11.8 billion) of taxpayers' money into Woori Finance in a bid to rescue the company from near bankruptcy.
The sale of Woori Finance is one of the top priorities pushed by the government of President Lee Myung-bak as part of its broader plans to privatize financial institutions, including state-run Korea Development Bank, to raise competitiveness in the financial sector.
mil@yna.co.kr
