HSBC to acquire majority stake in KEB

4th September 2007
By Staff Writer

UK-based HSBC Holdings has agreed to acquire 51.02% of the issued share capital of Korea Exchange Bank.

Print Article
Email A Friend
Your Comment
Post to del.icio.us
Digg this
News Alerts

No White Papers Available

The shares will be acquired from LSF-KEB Holdings SCA, a holding company owned by Lone Star Fund IV (US) LP and Lone Star Fund IV (Bermuda) LP. The purchase price is KRW3,400 billion plus $2.7 billion, amounting in total to the equivalent of approximately $6.3 billion, payable in cash.

The acquisition is subject to governmental and regulatory approvals, particularly in Korea from the Financial Supervisory Commission (FSC) and the Fair Trade Commission. In the event that the acquisition is completed after January 31, 2008, the purchase price will be increased by $133 million, also payable in cash.

HSBC group chairman Stephen Green said: "Our stated strategy is to focus on expanding HSBC's presence in important growth economies, particularly in Asia, Latin America and the Middle East and to maintain our capital strength to allow us to take advantage of strategic opportunities. This prospective acquisition reflects that strategy."

"It would provide HSBC with a significant presence in Asia's third largest economy and reinforce our position as Asia's number one international bank," he added.

  • Comment on this Article
Sign up to our weekly newsletters for the latest industry news & comment.
 Business Digest
 Distribution News
 Financial Services Digest
 Retail Banking News
 Savings & Investments News

Email Address