Woori Financial's Main Bid Attracts Interest, Hoban Construction, Harim, Dunamu Among Challengers

Announcement of Successful Bidder Selection Scheduled for the 22nd

[Asia Economy Reporter Kim Jin-ho] The sale of the remaining shares of Woori Financial Group has been a 'success.' It has been confirmed that Hoban Construction, Harim, the Woori Employee Stock Ownership Association, as well as existing shareholders such as Korea Investment Financial, participated. However, the IT giant KT, which participated in the preliminary bidding, reportedly withdrew its intention to acquire.

On the 18th, the Public Fund Management Committee (PFMC) under the Financial Services Commission held the main bidding for the sale of Woori Financial Group shares, with about half of the 18 companies that participated in the preliminary bidding taking part. Hoban Construction, Harim, Korea Investment Financial Group, Dunamu, Eugene PE, Woori Employee Stock Ownership Association, and ST International submitted bid proposals.

The Financial Services Commission and the Korea Deposit Insurance Corporation will conduct a thorough evaluation of the bidders and announce the successful bidder on the 22nd.

The share sale is a follow-up measure by the Public Fund Management Committee under the Financial Services Commission according to the 'Woori Financial Remaining Shares Sale Roadmap' announced in 2019. It is a competitive bidding process to sell 10% of the shares held by the Korea Deposit Insurance Corporation (15.13%), with a minimum bid quantity of 1%.

The market expects at least three new shareholders to participate. Three to four investors are expected to purchase shares divided as 4%, 4%, and 2%, or 4%, 4%, 1%, and 1%, respectively. Under current law, non-financial major shareholders can only hold up to 4% of financial company shares. Exceeding 4% requires passing a stringent major shareholder suitability review by financial authorities.

The market analyzes that the high interest from many companies in the sale of Woori Financial's remaining shares is due to the incentive of the 'outside director nomination rights' provided. Investors acquiring more than 4% of shares newly are granted the right to nominate outside directors of Woori Financial. A financial sector official said, "Compared to other financial holding companies, Woori Financial has fewer outside directors, making this a significant merit," adding, "Since it is an opportunity to own a commercial bank through share investment, many companies have participated."

It is also analyzed that the future growth potential of the financial industry, which was hit hard by COVID-19, and Woori Financial's record-breaking performance this year with expectations of continuous dividend increases, acted as attractive factors for investors.

Meanwhile, besides the Korea Deposit Insurance Corporation, Woori Financial Group currently holds shares of 9.8% by the National Pension Service, 8.75% by the Woori Employee Stock Ownership Association, and 5.62% by IMM PE. If the remaining share sale process is completed as planned, the Korea Deposit Insurance Corporation will lose its status as the largest shareholder, and Woori Financial will enter the path of full privatization.

This content was produced with the assistance of AI translation services.