Woori Financial to Reveal New Shareholders on 22nd... Eugene PE and Dunamu Likely (Comprehensive)

Possibility of Acquisition Mentioned for Employee Stock Ownership Association and KTB Asset Management

[Asia Economy Reporter Jin-ho Kim] Eugene Private Equity (PE) and Dunamu emerged as the leading acquisition candidates by submitting the highest bids in the final auction for the remaining shares of Woori Financial Group.

According to financial circles on the 21st, the Public Fund Management Committee (PFMC) under the Financial Services Commission will announce the results of the 'final auction for the remaining shares of Woori Financial Group' on the afternoon of the 22nd.

A total of nine investors participated in the final auction for the remaining shares of Woori Financial Group. According to the market, Hoban Construction, Harim, Korea Investment Financial Group, Dunamu, Eugene PE, Woori Employee Stock Ownership Association, and ST International submitted bid proposals.

Seven investors submitted bids exceeding the predetermined price pre-approved by the PFMC. The total bid proposals amounted to 1.73 times the maximum sale volume (10%). This essentially means the acquisition competition was a success.

In particular, Eugene PE and Dunamu, who submitted the highest bids, are mentioned as the most likely acquisition candidates. Eugene PE is reported to have secured more than 4% of shares, which grants the right to recommend outside directors. Additionally, Woori Financial Group’s employee stock ownership association, KTB Asset Management, and Align Partners are also considered likely to acquire shares.

The sale of the remaining shares of Woori Financial Group is a follow-up measure by the PFMC under the Financial Services Commission, based on the 'Woori Financial Remaining Shares Sale Roadmap' announced in 2019. The sale is conducted through a competitive bidding process, selling 10% out of the 15.13% stake held by the Korea Deposit Insurance Corporation, with a minimum bid volume of 1%.

The strong interest from many companies in the sale of Woori Financial Group’s remaining shares is analyzed by the market as a result of focusing on the 'outside director recommendation rights' provided as an incentive. Investors who newly acquire more than 4% of shares are granted the right to recommend outside directors of Woori Financial Group. A financial industry insider 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 equity investment, many companies participated."

The future growth potential of the financial industry, which was hit hard by COVID-19, and the fact that Woori Financial Group recorded its highest-ever performance this year and is expected to continuously increase dividends, also acted as attractive factors for investors.

The PFMC plans to hold a meeting tomorrow morning to finalize the acquirer. A Financial Services Commission official said, "Nothing has been finalized until the meeting selects the successful bidder for Woori Financial Group."

The PFMC intends to decide the final acquisition by reflecting some non-price factors in addition to price elements. In particular, the weighting of non-price factors will be evaluated according to objective standards and procedures set by the PFMC. When recovering public funds, the decision will consider the three major principles of privatization under the Financial Holding Companies Act: ▲maximizing public fund recovery ▲rapid privatization ▲and the desirable development direction of the domestic financial industry.

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