Hana Financial Group offers to buy The-K Non-life Insurance, seek capital increase for IB biz
2020.01.21 15:39:47 2020.01.21 15:40:15
South Korea’s Hana Financial Group has proposed to acquire The-K Non-life Insurance Co. from Korean Teachers` Credit Union and conduct a new rights offering worth 500 billion won ($431 million) for Hana Financial Investment Co. to beef up its non-banking business.
According to financial industry sources on Tuesday, the board of Hana Financial Group Inc, investment holding entity of Hana Financial Group, has approved the company’s plan to acquire 70 percent stake in The-K Non-life Insurance Co. from.
Hana Financial Group reportedly offered to pay around 100 billion won for the 70 percent stake in the non-life insurance company and is waiting for a response on its offer.
The acquisition of The-K Non-life Insurance would complete the portfolio of Hana’s non-banking business which is currently composed of life insurance, securities, credit card and savings bank.
이미지 확대 The-K Non-life Insurance is fully owned by Korean Teachers` Credit Union, one of the country’s major institutional investors. The-K Non-life started as a car insurance company and diversified its business to include comprehensive non-life insurance in 2014. The company is one of the smallest in the non-life insurance market in asset size, but its large customer base of teachers and school faculties is attractive, market experts said.
Separately, Hana Financial Investment is readying to issue 500 billion won worth new shares in the first quarter, which would increase the company’s equity capital to over 4 trillion won, the minimum capital standard required to run short-term loan and debt financing business, from around 3.5 trillion won at the end of last year.
Hana Financial Investment plans to seek board approval on Feb. 4 with an aim to complete the new rights offering by the end of March. The company is fully owned by the financial group’s investment holding entity.
Hana Financial Investment became a comprehensive finance and investment company last July after bolstering its capital through new rights issues of 700 billion won in March and 500 billion won in December of 2018.
According to financial industry sources on Tuesday, the board of Hana Financial Group Inc, investment holding entity of Hana Financial Group, has approved the company’s plan to acquire 70 percent stake in The-K Non-life Insurance Co. from.
Hana Financial Group reportedly offered to pay around 100 billion won for the 70 percent stake in the non-life insurance company and is waiting for a response on its offer.
The acquisition of The-K Non-life Insurance would complete the portfolio of Hana’s non-banking business which is currently composed of life insurance, securities, credit card and savings bank.
이미지 확대Separately, Hana Financial Investment is readying to issue 500 billion won worth new shares in the first quarter, which would increase the company’s equity capital to over 4 trillion won, the minimum capital standard required to run short-term loan and debt financing business, from around 3.5 trillion won at the end of last year.
Hana Financial Investment plans to seek board approval on Feb. 4 with an aim to complete the new rights offering by the end of March. The company is fully owned by the financial group’s investment holding entity.
Hana Financial Investment became a comprehensive finance and investment company last July after bolstering its capital through new rights issues of 700 billion won in March and 500 billion won in December of 2018.
By Choi Seung-jin and Cho Jeehyun
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