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Photo: Kyobo Life Insurance |
[Alpha Biz= Paul Lee] On the 7th, Kyobo Life Insurance announced that it had sold the 9.05% and 4.50% stakes held by global private equity firm Affinity Equity Partners and Singapore’s sovereign wealth fund, GIC, to Shinhan Investment Corp. and others.
Affinity's shares were acquired by the SBI Group, while GIC sold theirs to a special purpose company (SPC) formed by Shinhan and Korea Investment Securities. The agreed-upon put option price was 234,000 KRW per share, lower than the original investment price of 245,000 KRW per share in 2012.
With this transaction, the Affinity consortium, which had acquired a 24% stake in Kyobo Life in 2012, is now effectively disbanding, as two out of the four funds in the consortium have decided to exit.
Under Affinity’s new leadership, there has been consistent communication and amicable agreements, leading to a swift resolution of the dispute.
It is expected that other financial investors (FIs) of Kyobo Life, such as IMM PE and EQT, who each hold 5.23%, will also begin negotiations soon. As a result, the seven-year-long put option dispute is expected to be fully resolved.
Affinity commented on the deal, saying, "Through dialogue and negotiations with all stakeholders, we reached an agreement that allows for a win-win situation for everyone."
Kyobo Life CEO Cho Dae-gyu expressed, "I am pleased that, through appropriate discussions and negotiations between shareholders, we reached a mutually beneficial agreement at a reasonable price that is acceptable in the market."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
