April 20, 2024

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[THE INVESTOR] A Chinese-backed private equity fund has emerged as the sole bidder for a 85 percent stake in KDB Life Insurance, an affiliate of state-run Korea Development Bank, sources said on Dec. 23.

For the deal that could worth an estimated 900 billion won (US$748.19 million), Seoul-based IBK Securities’ private equity fund backed by Chinese investors made it to the final round by the deadline of Dec. 22. 

Another Chinese suitor, which had conducted due diligence has dropped out.

The KDB plans to close the transaction by the first half of 2017 if the bid price and other sale conditions offered by IBK Securities’ PEF meet its divestment target. Otherwise, the stake sale plan could fall through for the third time.

In 2014, KDB attempted to sell the unit two times in April and August but failed to find a suitor due to a price gap.

The controlling stake is owned by KDB Consus Value Limited Liability Company and KDB Consus Value PEF.

The KDB along with affiliates acquired KDB Life Insurance in 2010.

By Park Han-na (hnpark@heraldcorp.com)