State-Run Korea Development Bank To Sell 43 Percent Stake In Daewoo With KDB Asset Management To ‘Draw More Attractive Offers’
An official from Korea Development Bank (KDB) reveals that the state-run policy bank has decided to sell its entire 43 percent stake in KDB Daewoo Securities in package with KDB Asset Management to entice bidders.
"We decided that selling them as a package will draw more attractive offers rather than selling them separately," the official said, as noted by Korea Joongang Daily on Tuesday.
The bank owns 100 percent of KDB Asset Management. The official adds that KDB Capital, which is 99.92 percent owned by the bank, will not be included in the package and will be recommended separately next month.
"We will push to sell the companies as soon as possible," KDB said, as reported by Yonhap News Agency on August 24. "We will dispose of our entire stakes in the three companies in order to maximize sale value and contribute to the development of the local financial market."
Reports reveal that KB Financial Group and Mirae Asset Group have shown interest to bid for Daewoo. Reportedly, the former have already delivered a request for proposal (RFP) to some major security and accounting companies for the deal as it tries to build up its brokerage businesses.
On the other hand, Mirae Asset Group reportedly plans to "raise 1.2 trillion won from rights issues."
An analyst says that the terms of sale will not be a discouraging factor since potential bidders have shown strong interest for the brokerage house bidding.
"The sale price will range between 2 to 2.5 trillion won," said Daishin Securities analyst Kang Seung Gun. "Since potential buyers have shown strong interest, the terms of sale, such as the package deal, will not likely come as a discouraging factor."
Meanwhile, Korea Times forecasted on August 23 that KDB is also considering to sell Daewoo to a Chinese group, people familiar with matter reveal.
An industry official added that if Chinese capital would be allowed to join the brokerage house bidding for Daewoo, it will open more opportunities for Korean firms to "advance into China's financial markets regardless of the outcome of Chinese bids."
In addition, KDB have set three major rules for the deal: To sell it as soon as possible, to trade it for the highest possible price and to sell it by which it can help promote the domestic capital market.