ID :
196638
Sat, 07/23/2011 - 07:37
Auther :
Shortlink :
https://oananews.org//node/196638
The shortlink copeid
Eximbank decides to use tag-along right to sell minor KEB stake
SEOUL, July 23 (Yonhap) -- The state-run Export-Import Bank of Korea (Eximbank) said Saturday that it has decided to use its right to sell a minor stake in Korea Exchange Bank (KEB) in a bid to maximize profits.
The so-called "tag-along" right is given to minor shareholders as part of minority shareholder protection to sell their shares at the same price when the major stakeholder offloads its interest.
Eximbank's executive board decided in a Friday meeting to use the right to offload the bank's 6.25 percent share in KEB, which will bring the state-run bank about 220 billion won (US$209.1 million) in net profits, according to the bank.
"We judged that we'd better use the tag-along right to offload the stake at once due to complex legal issues surrounding the KEB sale," an Eximbank official said.
The decision came after U.S.-based Lone Star Funds, KEB's biggest shareholder, managed to extend its faltering deal with Hana Financial Group Inc. to sell a 51.02 percent stake in the fifth-largest bank.
Due to a delay in getting regulatory approval, Hana Financial failed to execute a November agreement to take over KEB by late May before renewing the acquisition deal on July 8. The deal will be effective until November.
pbr@yna.co.kr
(END)
The so-called "tag-along" right is given to minor shareholders as part of minority shareholder protection to sell their shares at the same price when the major stakeholder offloads its interest.
Eximbank's executive board decided in a Friday meeting to use the right to offload the bank's 6.25 percent share in KEB, which will bring the state-run bank about 220 billion won (US$209.1 million) in net profits, according to the bank.
"We judged that we'd better use the tag-along right to offload the stake at once due to complex legal issues surrounding the KEB sale," an Eximbank official said.
The decision came after U.S.-based Lone Star Funds, KEB's biggest shareholder, managed to extend its faltering deal with Hana Financial Group Inc. to sell a 51.02 percent stake in the fifth-largest bank.
Due to a delay in getting regulatory approval, Hana Financial failed to execute a November agreement to take over KEB by late May before renewing the acquisition deal on July 8. The deal will be effective until November.
pbr@yna.co.kr
(END)
