JC Partners is facing growing concerns over its bid to acquire Korea Development Bank (KDB)’s life insurance arm KDB Life Insurance, the Korean Times has reported.
According to report, the JC Partners and the bank have postponed the stock purchase agreement until next month as it is struggling to raise 150 bn won ($127m) investment required for the acquisition.
The firm previously postponed the deal in last August.
The bank, through a private equity fund KDB-Consus Value PEF, holds nearly 88 million common shares of KDB Life Insurance that makes up more than 90% of the entire stake.
Earlier this month, the KDB Consus Value PEF reportedly changed its articles of association to deprive Consus Asset Management of its veto.
Consus, one of the KDB Life shareholders, has opposed the move to sell the insurer for a lower price and therefore, its loosing of veto rights was said to be favourable for JC Partners.
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This is the fourth time KDB is trying to sell off its life insurance unit, the report said.
Last year, it was reported that the Korean lender is planning to offload its majority stake in KDB Life Insurance through an open tender.
KDB was quoted by The Korea Herald as saying at the time: “This time, (KDB) will also be selling the 8.8 million units of ordinary shares in KDB Life Insurance and handing over the management rights, so we expect active participation from strategic investors here and abroad.”
KDB acquired KDB Life Insurance, formerly Kumho Life Insurance, in March 2010.