Hana appeals for funding from Asian investors for KEB takeover

Hana woos financial assistance from China Investment Corp., China Merchants Bank, and Sumitomo Mitsui Financial Group Inc.

Hana Financial is looking into attracting overseas investors who have a positive view on the takeover and are willing to invest in long-term

Hana Financial Group Inc. is seeking to lure financial companies and banks from China and Japan as strategic investors in a bid to help finance its takeover of Korea Exchange Bank, industry sources said Tuesday.

Hana Financial sealed a 4.69 trillion won ($4.1 billion) deal with U.S. buyout firm Lone Star Funds on Nov. 25 to acquire a 51.02 percent stake in KEB, the country’s fifth-largest lender, as part of its efforts to outgrow local banking rivals.

“It is true that Hana Financial has been in contact with several financial firms, including China’s sovereign wealth fund China Investment Corp., the China Merchants Bank, Japan’s Sumitomo Mitsui Financial Group Inc. and a Europe-based investment bank,” a source close to the matter said.

Strategic investors, however, have not been decided yet, the source added.

“Hana Financial is looking into attracting overseas investors who have a positive view on the takeover and are willing to invest in long-term,” another source close to the matter said.

View the full story in Korea Herald.