The shares will be acquired from LSF-KEB Holdings SCA, a holding company owned by Lone Star Fund IV (US) LP and Lone Star Fund IV (Bermuda) LP. The purchase price is KRW3,400 billion plus $2.7 billion, amounting in total to the equivalent of approximately $6.3 billion, payable in cash.
The acquisition is subject to governmental and regulatory approvals, particularly in Korea from the Financial Supervisory Commission (FSC) and the Fair Trade Commission. In the event that the acquisition is completed after January 31, 2008, the purchase price will be increased by $133 million, also payable in cash.
HSBC group chairman Stephen Green said: Our stated strategy is to focus on expanding HSBC’s presence in important growth economies, particularly in Asia, Latin America and the Middle East and to maintain our capital strength to allow us to take advantage of strategic opportunities. This prospective acquisition reflects that strategy.
It would provide HSBC with a significant presence in Asia’s third largest economy and reinforce our position as Asia’s number one international bank, he added.
