A consortium of Korea Federation of Community Credit Cooperative (KFCC) and Seoul-based STLeaders Private Equity has been confirmed as one of the preferred bidders shortlisted for a controlling stake in Hyosung Capital Co.

The team would be up against BankerStreet Private Equity, WWG and one or two other players for the 97.5 percent stake of the financial services unit of the Korean conglomerate Hyosung Group, according to industry sources on Wednesday. The final bid is scheduled for next month.

Hyosung Group has been seeking to sell its financial services arm since transitioning to a holding entity structure in December 2018. The group’s holding company Hyosung Corp. has to offload Hyosung Capital by December this year as a non-financial holding company is prohibited from owning a financial unit under local fair trade law.

Hyosung Capital beefed up considerably in 2008 following the merger with Starlease, which Hyosung Group had acquired from U.S. private equity firm Lone Star Funds for 300 billion won. Last year, Hyosung Capital had 2.37 trillion won of assets under management, with an operating profit of 35 billion won and net profit of 27.6 billion won.

KFCC had first joined hands with STLeaders last year to acquire PE BS Rental, a local rental service of consumer goods, a deal they eventually lost.

BankerStreet is said to have partnered with a Chinese strategic investor, which could dampen its bidding chances given Korean regulators’ wary stance on Chinese capital.

By Kang Doo-soon and Kim Hyo-jin

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