The bidding war for Lotte Card Co. has tilted in Hana Financial Group’s favor as its strongest contender Hanwha Group is rumored to have shifted its attention to buying Korea’s second-largest carrier Asiana Airlines Inc.

The bid for Lotte Card opened Friday, with Citigroup Global Markets as the lead manager. The preferred bidder is expected to be announced in late April or early May. Its parent Lotte Group is reportedly seeking a minimum 1.5 trillion won ($1.32 billion) from the divesture of the country’s fifth-largest card company.

Hanwha Group and Hana Financial Group are said to be the favorites. Prospective buyers from private equity funds include MBK Partners, IMM PE, Hahn & Company and Orix PE.

Hanwha Group has long been interested in adding a card unit to strengthen its financial and retail business. It expects synergies with its retail arm Hanwha Galleria and insurance firms Hanwha General Insurance and Hanwha Life, according to industry insiders.

But the offering of Asiana Airlines may have dented some of its eagerness.

Hanwha’s name - along with SK, Aekyung and CJ - has come up on the potential buyer list after Kumho Group on Monday announced it would hand over its controlling stake in the flagship carrier in return for creditor support. Hanwha has so far maintained it was committed to the Lotte Card bid and was not interested in the airliner.

Hana Financial Group has been chasing Lotte Card to bolster its non-banking business. Earlier this year, it vowed to increase the share of its non-banking sector to 30 percent of total group profits.

Hana Card currently has 7 trillion won in assets and a market share of 8 percent in the country. But when merged with Lotte Card, a company with 13 trillion won in assets and an 11 percent market share, it could rise to become Korea’s No. 3 card player after Shinhan Card and Samsung Card.

By Kang Gye-man and Kim Hyo-jin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]