Global private equity fund (PEF) Carlyle Group will sell a 1.2 percent stake in KB Financial Group in a block deal worth about 32 billion won.
According to sources in the investment banking (IB) industry on Feb. 14, Carlyle Group made a demand forecast after the close of the market to push forward the block deal for its 1.2 percent stake in KB Financial Group.
Carlyle Group is reportedly seeking 64,608 to 65,954 won per share, a discount of 2 to 4 percent from the day’s closing price of 67,300 won. The total sale amount is expected to be between 32.3 billion and 32.98 billion won. Goldman Sachs, Morgan Stanley, UBS, and others are the lead managers.
Carlyle, through its asset management arm Kingsmen Investments, invested in a 240 billion won exchangeable bond (EB) issued by KB Financial Group in 2020, securing a 1.2 percent stake in KB Financial Group.
Carlyle is promoting the block deal to recoup its investment as banking stocks have recently rallied on the back of low price-to-book ratios (PBRs), industry observers say. If the block deal becomes success, Carlyle Group is expected to realize a profit of about 80 billion won.