Upbit operator Dunamu joins race for partial stake in Woori Financial

Dunamu Inc., operator of South Korea¡¯s top crypto currency exchange Upbit, joined the race for a partial stake in the offering of 10 percent government holding in Woori Financial Holdings, pitted against contenders ranging from foreign financial players to telecom network operator.

According to multiple sources from the investment bank industry on Wednesday, Dunamu was confirmed to have vied for the tender for a 10 percent stake in Woori Financial Holdings held by state-run Korea Deposit Insurance Corporation (KDIC).

The blockchain technology company internally decided to join the tender upon receiving investment invitation from KDIC on Monday. It is yet to appoint an outside adviser.

A bank stake would be a huge bonus for Dunamu as having a bank account has become a must for virtual trade. Its cash reserves have swelled thanks to crypto frenzy, building ammunitions for M&A that led to recent purchase of brokerage service app Stock Plus.

Dunamu has been tapping the M&A market since the end of last year, said an unnamed official from the finance sector.

Last year, Dunamu had 1.08 trillion won ($919.6 million) in cash and cashable assets on the back of increased commission profit amid a rise in cryptocurrency trade.

The privatization scheme is expected to run smoothly due to heated participation.

[Photo by Park Hyung-ki]

Woori Bank, the flagship of the fledgling holding group, was born through mergers of ailing banks in the wake of 1997-1998 Asian financial crisis and was nationalized in 2001 through bailout of 12.8 trillion won. Through incremental stake sale, 11.14 trillion won worth was retrieved, leaving about 1.63 trillion won worth left.

KDIC retains a 15.13 percent stake, National Pension Service (9.8 percent), Fubon Life Insurance (4 percent), Korea Investment & Securities (3.76 percent), Kiwoom Securities (3.76 percent), and Hanwha Life Insurance (3.74 percent).

As in the previous sale, the Public Fund Oversight Committee under the Financial Services Commission will sell the 10 percent stake in pieces of 4 percent, 4 percent and 2 percent to different shareholders to sustain the oligopolistic structure.

Apart from Dunamu, KT, Hoban Construction, Glenwood Private Equity, Eugene Private Equity, Woori employee stock ownership association, Taiwan¡¯s Fubon Financial, Korea Investment & Securities, and Kiwoom Securities have handed in letters of intent.

The candidates have to submit final bids by the deadline on Nov. 18 and the preferred bidder will be named on Nov. 22.

On Thursday, shares of Woori Financial Holdings closed 1.19 percent higher at 12,750 won.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]