'Kang Sung-bu Fund' KCGI Nears Acquisition of Meritz Asset Management

CEO Kang Sung-bu Expresses Continuous Intent to Acquire Meritz Asset Management
Negotiations Ongoing on Sale Price, Mentioning Around 30 Billion KRW...Revisiting the 'John Lee Incident'

[Asia Economy Reporter Kwangho Lee] Meritz Asset Management is pursuing the acquisition of Meritz Asset Management by Kangsungboo Fund (KCGI), a leading activist fund in Korea.

According to the investment banking (IB) industry on the 13th, Meritz Financial Group and NH Investment & Securities, the sales advisory firm, have selected KCGI as the preferred bidder and signed a memorandum of understanding (MOU) for the sale. Currently, the sale price negotiation is underway.

The sale price is rumored to be around 30 billion KRW based on 100% of Meritz Financial Group's shares. Since negotiations are still ongoing, it remains to be seen whether Kangsungboo Fund will ultimately acquire Meritz Asset Management, but the industry views it as highly likely. KCGI has been consistently mentioned as a potential buyer in the market. Meritz Financial Group stated that the goal regarding the sale rumors of Meritz Asset Management is "to strengthen asset management capabilities."

Kangsungboo, the CEO, also said in an interview with Asia Economy at the Conrad Hotel in Yeouido on the 21st of last month, "Due to a confidentiality agreement (NDA) with Meritz, I cannot disclose detailed information, but it is highly likely that KCGI will acquire Meritz Asset Management."

Meritz Financial Group has owned Meritz Asset Management, established in 2008, as a 100% subsidiary. Previously, John Lee, the former CEO of Meritz Asset Management, resigned in June amid allegations of covert investments.

Controversy arose when it was revealed that he invested in a real estate-related online peer-to-peer (P2P) lending company operated by a friend under his wife's name and incorporated the company into Meritz Asset Management's managed funds.

Industry insiders speculate that this background influenced Meritz Financial Group's decision to sell Meritz Asset Management.

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