Eleven investors bid for Woori Finance’s regional banks

Part of attempt to privatize Korea’s largest bank.

The South Korean government said it received 11 first round offers to buy the two regional banks of Woori Finance Holdings Company as part of its latest bid to privatize the nation’s largest financial group by assets. Up for privatization are Woori’s Kwangju Bank and Kyongnam Bank. Seven firms submitted preliminary bids for Kwangju Bank unit while four offers were made for Kyongnam Bank.

The total stakes to be sold could reach US$2 billion, said Kyobo Securities Company. Shinhan Financial Group Company said it made an offer for Kwangju. Industrial Bank of Korea said it was among the bidders for Kyongnam.

A consortium of private equity funds and businessmen from Gyeongnam province submitted a preliminary bid for Kyongnam Bank. A group of businessmen based in Gwangju City and Jeonnam province made an offer for Kwangju Bank. DGB Financial Group Inc. and BS Financial Group Inc. submitted bids for both banks. The government wants to sell 57% of each lender. Its Kyongnam Bank holding could come to US$1.1 billion while its stake in Kwangju Bank may be valued US$937 million. In June, the government said it will sell Woori’s assets separately after failing to attract buyers for its 57% stake three times since 2010.