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Photo = Kyobo Life |
[Alpha Biz= Paul Lee] Kyobo Life's move to acquire SBI Savings Bank is driven by the need to expand its business areas for its transition into a financial holding company. For Japan’s SBI Group, which holds 100% of the shares in SBI Savings Bank, the timing was right to recover its investments made since 2013. The interests of both parties aligned.
According to financial industry sources on April 24, Kyobo Life is set to approve the acquisition of SBI Savings Bank shares at its board meeting next week. Following this, the company will proceed with the acquisition after undergoing the Financial Services Commission's major shareholder qualification review, which typically takes about two months.
The agreement is said to include a right of first refusal for Kyobo Life to acquire additional shares in SBI Savings Bank. However, it is expected to take several years for Kyobo Life to secure management control through additional acquisitions. A financial industry insider speculated, "Given that Kyobo Life has no experience in managing a savings bank, it is likely they will maintain the current structure for a while."
Kyobo Life confirmed, "We have been exploring various targets for our transition into a financial holding company, and while we have been considering entering the savings bank business, no concrete decisions have been made regarding the acquisition of SBI Savings Bank."
Considering the close relationship between Kyobo Life and SBI Group, rooted in their mutual support during the long-running put-option dispute with financial investors (FIs), the market anticipates that management control will eventually pass to Kyobo Life in the long term.
Kyobo Life’s interest in acquiring SBI Savings Bank comes as the dispute between Shin Chang-jae, Chairman of Kyobo Life, and the FIs, which had been ongoing since 2012, has effectively been resolved. During this period, SBI Group acquired a 9.05% stake from Affinity Equity Partners, one of Kyobo Life's FIs, and subsequently purchased shares from two other FIs. This would increase Kyobo Life's stake in the company to around 20%.
SBI Group, which separated from SoftBank Group's investment division, acquired Hyundai Swiss Savings Bank in 2013 and rebranded it as SBI Savings Bank. Since then, it has invested more than 1.35 trillion KRW in the bank. As of the end of last year, SBI Savings Bank’s assets reached 14 trillion KRW, making it the largest savings bank in the industry.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
