Competing with Hong Kong-based Fund
MBK Partners, the largest private equity fund (PEF) management company in Korea, and SC Rowy, a Hong Kong-based restructuring fund, have started due diligence to acquire MG Non-Life Insurance.
Samil PWC, which is in charge of the sale of the insurance company, has provided materials for due diligence to MBK and SC Rowy and plans to select a preferred bidder as early as November. Up for sale is a 92 percent stake in MG Non-Life Insurance owned by JC Partners. The sale price is said to be about 300 billion won, including 100 billion won for old stocks and debt to a creditor group, and 200 billion won for a capital increase for new stocks.
MBK is conducting due diligence through Samjong KPMG and is studying the insurance company's growth potential through Boston Consulting Group (BGC).
SC Rowy is a management company with strengths in investment in non-performing loans. It is said to have been interested in the insurance industry for a long time.
Meanwhile, Korea Deposit Insurance Corp. (KDIC) is separately promoting the sale of MG Non-Life Insurance as the insurer has been designated as an insolvent financial institution. KDIC plans to select a lead manager of the sale process in the near future and set up a tender within this year.