London Korean Links

Covering things Korean in London and beyond since 2006

Shinhan agrees to buy majority stake in LG Card

After becoming preferred bidder earlier this year,

On December 20, 2006, Shinhan Financial Group signed an agreement with Korea Development Bank, the Presiding Bank representing the 14 Creditor Financial Institutions, to acquire a 78.58% stake in LG Card at KRW67,770 per share.

The price amounts to 6.68 trillion won ($7.19 billion), according to Reuters. The deal was the largest ever Korean M&A transaction, according to Bloomberg, and the transaction completes the restructuring of LG Card, which began when the Creditor Financial Institutions bailed the company out in 2004 through a KRW4.4 trillion recapitalization program.

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