Hana Financial named preferred bidder for KDB Life

Hana Financial Group has been named the preferred bidder to acquire KDB Life Insurance, Korea Development Bank (KDB) announced on Thursday.

Hana Financial Group headquarters in central Seoul [HANA FINANCIAL GROUP]

Hana Financial Group has been named the preferred bidder to acquire KDB Life Insurance, Korea Development Bank (KDB) announced on Thursday.

If the deal goes through, Hana Financial Group will own a 92.73 percent stake in KDB Life Insurance.

“The bidding closed on July 7, and the company has been selected as the preferred bidder based on its eligibility, the likelihood of the deal going through and KDB Life Insurance's mid to long-term growth potential,” KDB said in a statement.

Due diligence will be conducted on Hana Financial Group before it acquires the life insurance firm. The deal price is expected to be finalized following the due diligence.

“Korea Development Bank will do its best to close the deal successfully by closely cooperating” with Hana Financial Group, the bank added.

“If the deal goes through, it will set a foundation for KDB Life Insurance to be guaranteed stable future growth as a member of Hana Financial Group that possesses an extensive individual financial network.”

Hana Financial Group runs a subsidiary Hana Life. Its asset size as of late March was 6.3 trillion won ($4.96 billion), ranking 17th out of the total 22 life insurance operators. The acquisition of KDB Life Insurance is expected to push up the ranking to 8th in terms of asset size. Hana Life's insurance products are also expected to diversify following the acquisition.

The deal is also expected to diversify Hana Financial Group’s business, currently centered on banking.

This marks the fifth time the KDB is attempting to sell the life insurance firm following a series of failed attempts. Previous potential acquirers included JC Partners, which was not able to buy the stake as it did not meet the conditions.

Private equity fund operators, including Cactus PE and WWG Asset Management, reviewed the deal, according to local media reports. But they did not take part in the final bid.

The majority of the stake in KDB Life Insurance is owned by KDB Consus Value PEF, consisting of KDB, Consus Asset Management and other investors.

KDB acquired Kumho Life Insurance in 2009 as part of a restructuring process for Kumho Group.

BY JIN MIN-JI [jin.minji@joongang.co.kr]