Five bidders including domestic private equity funds and foreign strategic investors have been shortlisted to vie for Hyosung Capital Co. under Korean conglomerate Hyosung Group worth about 500 billion won ($418 million).

Hyosung Group on Sunday shortlisted five out of 10 players that submitted letters of intent for a 97.5 percent stake in Hyosung Capital on July 10. They include BankerStreet Private Equity and White Whale Group, according to investment banking sources.

China’s Ping An International Financial Leasing, Taiwanese strategic investor and global PEF names were missing in the short list.

Hyosung Group is said to be seeking 500 billion won for the stake of Hyosung Corp. The tender gained appeal after Hyosung Capital’s second-quarter results beat the market consensus despite pandemic setback.

Hyosung Group has been looking for a buyer for the financial services unit since its transition into a holding entity structure in December 2018. Under the local fair trade law, the group’s holding company Hyosung Corp must sell its stake in Hyosung Capital by December this year.

A preferred bidder will be announced after final bids were handed in next month.

Hyosung shares rose 5.82 percent to close Monday at 72,700 won in Seoul.

By Park Jae-young and Lee Ha-yeon

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