Korea Development Bank (KDB) is reportedly gearing up to offload its majority stake in KDB Life Insurance through an open tender.
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.
It is the fourth attempt by the lender to divest its stake in the life insurance company as the previous efforts could not yield the desired result.
If all goes as planned by the South Korean state-run lender, the sale is scheduled to be completed by next year, reported The Korea Herald.
The bank has hired Credit Suisse and Samil PricewaterhouseCoopers as deal supervisors. It has also selected Seoul-based law firm Lee & Ko as the legal adviser.
Besides, the bank has teamed up with actuarial consulting firm Milliman to carry out the due diligence of the deal.
Bid managers will receive letters of interest from potential suitors and select them by November. By the end of 2019, the most preferred bidder will be chosen after which a stock transaction will be executed next year.
KDB was quoted by the publication as saying: “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.