To Finance Acquisition of Prudential Life Insurance
KB Kookmin Bank sold off its 3 percent stake in SK Holdings, the holding company of SK Group, for about 500 billion won through a block deal on June 24. The buyer was reportedly a foreign investor.
The bank acquired the stake in SK Holdings in 2011 through a stake swap with SK Group. As SK C&C and SK Holdings merged, the bank’s stake in SK C&C was changed into shares in SK Holdings.
Experts say that KB Financial Group decided to sell its stake in SK Holdings as its stock price jumped sharply on the back of the listing of SK Biopharmaceuticals, a company considered to have great growth potential. SK Holdings is the largest shareholder of SK Biopharmaceuticals and will secure a 75 percent stake in it after listing. Market analysts say that SK Holdings’ corporate value will rise after the listing of SK Biopharmaceuticals. However, the stock price of SK Holdings fell more than 7 percent after the block deal.
KB Financial Group previously issued 240 billion won in exchange bonds (EB) for Carlyle Group, a global private equity fund operator, based on its shares as a basic asset. The funds will be partly used to take over Prudential Life Insurance and partly as operation funds. The proceeds from the sale of its stake in SK Holdings are also expected to be used for the acquisition of Prudential.