South Korea raises $1bln by selling Woori shares

Move part of KDIC plan to reduce stake in Woori to 50% towards lender’s privatization.

South Korea has raised $1 billion by selling a 9 percent stake in Woori Finance Holdings in a block deal at 16,000 won ($14.26) a share, Yonhap News said on Thursday, citing banking industry sources.

The sale was widely expected after shares in the country's No. 3 banking group jumped last month on easing bad debt worries and hopes for industry consolidation.

It is also a prelude for the long delayed sale of a controlling stake in Woori, the details of which will be drafted later this year.
The state-run Korea Deposit Insurance Corp (KDIC) had initially offered a 7 percent stake in the country's No. 3 banking group at a price between 15,400 ($13.7) and 16,000 ($14.26) won a share, sources told Reuters earlier on Thursday.

Yonhap said late in the day the shares were priced at 16,000 won ($14.26) each, on a par with Thursday's closing price in the local market, while the offer size was increased to meet strong demand.

Officials at KDIC and banks managing the deal could not be reached immediately.

View the full story in Reuters.