Hana in talks with buyout firms to fund KEB deal -sources

HONG KONG, Nov 24 (BestGrowthStock) – South Korea’s Hana Financial
Group is in preliminary talks with private equity firms,
including Carlyle Group [CYL.UL] and Kohlberg Kravis Roberts & Co
(KKR.N: ), to fund its $4 billion acquisition of a majority stake
in Korea Exchange Bank (004940.KS: ), sources said on Wednesday.

The board of Hana (086790.KS: ) signed the KEB deal on
Wednesday and said it was considering options for financing
[ID:nSEU003188]. The sources said Hana is expected to tap buyout
funds for up to half the cost of the transaction.

Carlyle and KKR were among buyout firms in discussions to
help finance the deal by buying stakes of up to 10 percent each
in KEB, two sources familiar with the transaction told Reuters,
adding that the talks are preliminary and it was uncertain
whether the buyout funds will actually agree to a deal.

Other firms that might also get involved included TPG
[TPG.UL], CVC [CVC.UL], and MBK and Pacific Alliance Group,
another source said. The buyout firms were looking at individual
stakes rather than acting as a consortium.

“It is safe to say there is a lot of private equity interest
around the Korean banks,” one source familiar with the deal told
Reuters.

A Carlyle spokeswoman declined to comment, while a KKR
spokesman was not available for immediate comment. The other
private equity funds also could not be reached immediately for
comments.
(Reporting by Michael Smith and Denny Thomas; Editing by Ken
Wills)

Hana in talks with buyout firms to fund KEB deal -sources