LG Card, South Korea's largest credit card issuer, has secured its immediate future by attaining a $964 million cash injection. However the possibility of its sale has become even more likely as a result.
The survival deal was secured when former parent company LG Group agreed to inject half the required funds. However, creditors will be even keener to offload the troubled financial company after stumping up the other half of the near $1 billion bailout.
According to Korea Development Bank, LG Card’s lead creditor, potential interested investors apparently include HSBC, Citigroup and Woori Financial Group, FT.com reported. However, according to several reports, already submitted initial bids from the aforementioned companies have been rejected.
Despite this, the resolve of LG Card’s investors to hold out for a higher price is likely to be limited as they must already sell five percent of the company each quarter this year to satisfy stock distribution regulations and because the credit card company’s share value plummeted again by 15% in recent trading.