Standard Chartered Bank has emerged as the favorite to secure Korea First Bank, South Korea's eighth-largest lender, as it is understood that the London-based outfit has outbid rival HSBC.
According to an industry source quoted by the Maeil Business Newspaper, Newbridge Capital, Korea First Bank’s majority shareholder, has made a verbal agreement with Standard to sell its stake. Newbridge Capital holds 48.6% of Korea First Bank.
The deal would also include the 48.5% stake held by state-run Korea Deposit Insurance Corp and the remaining shares held by the country’s finance ministry.
The revelation is a blow to HSBC, which had been considered the favorite in the lead up to the previously scheduled December decision. However, that decision deadline has come and gone, indicating that Newbridge could not cement a deal with the international bank.
The source confirmed that Standard Chartered had offered an improved price over HSBC’s bid. Speculation is that Standard’s offer was over 16,800 won per stock compared to HSBC’s 13,000 won. If accurate, Standard’s bid would represent a 70 billion won improvement over HSBC’s.
It is expected that Newbridge will announce its decision by next week.