Daewoo Agrees to Sell Kyobo Life Stake to Affinity Group
Daewoo International Corp. (047050) agreed to sell its 24 percent stake in Kyobo Life Insurance Co. to a consortium led by Affinity Equity Partners Ltd., a Hong Kong- based buyout firm, Daewoo said in an e-mail yesterday.
Daewoo agreed to sell 4.92 million Kyobo Life shares for 1.2 trillion won ($1.1 billion), the South Korean company said in a regulatory filing yesterday. The price per share is 245,000 won, according to an e-mailed response to questions from Bloomberg.
The Affinity group paid 6.5 percent more for its Kyobo stake than Ontario Teachers’ Pension Plan Board, which bought 9.9 percent in the unlisted insurer in June for 230,000 won apiece. The pension fund bought its stake from state-run Korea Asset Management Corp.
The transaction is Affinity’s first acquisition in the financial sector in Korea and its first purchase in the country since it bought a stake in Oriental Brewery Co. Ltd. in 2009, data compiled by Bloomberg show.
Daewoo, the steel and crude oil trader controlled by South Korean steelmaker Posco, didn’t name other members of the consortium. Officials at Affinity couldn’t be reached to comment on the purchase yesterday.
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