ID :
193679
Fri, 07/08/2011 - 10:50
Auther :
Shortlink :
https://oananews.org//node/193679
The shortlink copeid
Hana, Lone Star agree on KEB deal extension
(ATTN: RECASTS headline; UPDATES with more info in paras 2-4)
SEOUL, July 8 (Yonhap) -- Hana Financial Group Inc., South Korea's No. 4 banking group, said Friday it has agreed to extend a deal with U.S. buyout fund Lone Star Funds to buy a controlling stake in Korea Exchange Bank (KEB).
The two sides agreed to extend the deal by six months to Nov. 30 and lower the price to 4.41 trillion won (US$4.17 billion), Hana Financial said in a regulatory filing. The extended deal will remain valid past the deadline unless one party cancels it.
The purchase price per share has been set at 13,390 won, Hana Financial said, adding it will rise by 100 won every week starting on Oct. 1 unless the deal is completed by the end of September.
If Lone Star receives any dividend from KEB by the deadline, the purchase price will be cut by the dividend amount, Hana Financial said.
In November, Hana Financial clinched a deal to purchase a 51.02 percent stake in South Korea's No. 5 lender for 4.69 trillion won, which required Hana Financial to complete the takeover by late May.
But the financial watchdog's decision to delay its review of Lone Star Funds' eligibility as the top shareholder of KEB has complicated Hana Financial Group's attempt to buy KEB.
Hana Financial has been seeking to lower the takeover price as KEB's recent decision to pay out a record interim dividend is cutting the corporate value of KEB.
KEB's board decided last week to pay out a quarterly dividend worth of 1,510 won per share, causing U.S. private equity fund Lone Star to rake in dividends worth 496.9 billion won.
SEOUL, July 8 (Yonhap) -- Hana Financial Group Inc., South Korea's No. 4 banking group, said Friday it has agreed to extend a deal with U.S. buyout fund Lone Star Funds to buy a controlling stake in Korea Exchange Bank (KEB).
The two sides agreed to extend the deal by six months to Nov. 30 and lower the price to 4.41 trillion won (US$4.17 billion), Hana Financial said in a regulatory filing. The extended deal will remain valid past the deadline unless one party cancels it.
The purchase price per share has been set at 13,390 won, Hana Financial said, adding it will rise by 100 won every week starting on Oct. 1 unless the deal is completed by the end of September.
If Lone Star receives any dividend from KEB by the deadline, the purchase price will be cut by the dividend amount, Hana Financial said.
In November, Hana Financial clinched a deal to purchase a 51.02 percent stake in South Korea's No. 5 lender for 4.69 trillion won, which required Hana Financial to complete the takeover by late May.
But the financial watchdog's decision to delay its review of Lone Star Funds' eligibility as the top shareholder of KEB has complicated Hana Financial Group's attempt to buy KEB.
Hana Financial has been seeking to lower the takeover price as KEB's recent decision to pay out a record interim dividend is cutting the corporate value of KEB.
KEB's board decided last week to pay out a quarterly dividend worth of 1,510 won per share, causing U.S. private equity fund Lone Star to rake in dividends worth 496.9 billion won.
