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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] According to financial sources on the 19th, KDB Industrial Bank resolved last month on the 30th to invest 299 billion KRW into KDB Kansas Value PEF (Private Equity Fund), and executed the investment on this day. They have also authorized additional investment of up to 8 billion KRW for future cost coverage, bringing the total investment to a maximum of 307 billion KRW.
This injection sets the stage for KDB Industrial Bank to participate in KDB Life Insurance's capital increase. Earlier in April, KDB Life Insurance announced plans to raise 315 billion KRW through a rights offering. Under this plan, existing shareholders will subscribe to 63 million common shares at 5,000 KRW per share. Of the 299 billion KRW being invested now, 990 billion KRW will go towards debt repayment, while the remaining 2,160 billion KRW will be used for operational funds.
This latest round of investment increases KDB Industrial Bank's total investment in KDB Life Insurance from the previous 1.2 trillion KRW to approximately 1.5 trillion KRW. Last September, KDB Industrial Bank, along with KDB PEF and KDB Kansas Value Limited (a special purpose vehicle wholly owned by KDB PEF), injected 100 billion KRW into KDB Life Insurance through a rights offering.
Since acquiring KDB Life Insurance during the restructuring of the Kumho Group in 2010, KDB Industrial Bank has attempted to sell it six times over the past decade, without success. Last year, Hana Financial Group was selected as the preferred negotiation partner but withdrew from the acquisition after due diligence. Earlier this year, a sale to MBK Partners was also pursued but fell through once again.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
