M&A Team advises KAMCO on sale of its 9.93% of equity interest in Kyobo Life Insurance
2012.06.21.
Yulchon's M&A team successfully closed a transaction on behalf of Korea Asset Management Corporation ("KAMCO") in the sale of 9.93% of its equity interest in Kyobo Life Insurance Co., Ltd. ("Kyobo life") to Ontario Teachers' Pension Plan ("OTPP"), a Canadian pension fund, for KRW468 billion. KAMCO originally held Kyobo Life’s shares in the non-performing loan disposal fund.
The market's initial response was pessimistic due to concerns that the transaction was unlikely to succeedbecause investors' lacked interest in a small amount of unlisted shares. Another problem was a schedule conflict with Daewoo International Corporation, the second largest shareholder of Kyobo Life, which was set to sell its shares (24%). However, the deal was successfully concluded by adjusting the sale schedule and structuring the deal to allow the concurrent execution and closing of the transaction.
This is the first cross-border deal where a public institution made a direct sale to a well-established foreign pension fund. KAMCO retrieved KRW468 billion of public funds and OTPP made its first direct investment in the Republic of Korea.
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