Taiwan’s Fubon Financial Holding Co. has completed its equity investment in South Korea’s Hyundai Card Co. and filed as the largest non-Hyundai shareholder in the credit issuer under Hyundai Motor Group.

Hyundai Card announced Friday that it has completed the procedure of shareholder change on Thursday upon Fubon Financial’s completion of M&A.

The Taiwan-based financial company took over 19.98 percent of 24 percent stake in Hyundai Card from a consortium led by financial investor Affinity Equity Partners.

Fubon Bank purchased 9.99 percent to become a shareholder of Hyundai Card in February and Fubon Life Insurance bought an additional 9.99 percent in May.

In February, Hyundai Commercial Inc. bought remaining stake owned by Affinity Equity Partners upon the buyout fund manager’s request as it sought to cash out from its investment.

Under the change, large shareholders are Hyundai Motor Co. with 36.96 percent, Kia Corp. 11.48 percent, Hyundai Commercial 28.56 percent, Fubon Financial 19.98 percent, and others 3.02 percent.

Fubon Financial, along with Hyundai Motor Group, will take part in management as major shareholder, Hyundai Card said.

“Fubon Financial is Hyundai Card’s strategic investor,” Hyundai Card said in a statement. “It is known to have highly evaluated Hyundai Card’s growth potential in diverse areas such as private label credit card (PLCC), data science, and branding.”

The credit card issuer reiterated that initial public offering is not on its agenda for now given that Fubon Financial has joined as strategic investor.

Fubon Financial is a leading financial entity in Taiwan that is engaged in diverse financial services from insurance to banking to securities. It advanced into Korean financial market in 2018 when it acquired a stake in Hyundai Motor Group’s Hyundai Life, currently Fubon Hyundai Life Insurance.

By Lee Eun-joo

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