UPDATE 1-Hana Fin seeks investors to fund $4.1 bln KEB buy

* Eyes investors each willing to buy $650 mln Hana shares

* Hana shares jump 5.7 pct on synergy expectations

(Adds background)

SEOUL, Dec 9 (BestGrowthStock) – Hana Financial Group (086790.KS: )
said on Thursday it was seeking a number of foreign investors
each willing to buy up to 9 percent of its shares worth about
$650 million at its current share price to fund its $4.1 billion
acquisition of Korea Exchange Bank (004940.KS: ).

Hana, South Korea’s fourth-largest financial services firm by
assets, is searching for ways to finance the country’s biggest
ever banking acquisition, including a rights offering, with a
view to conclude the deal in the first quarter of 2011.
[ID:nTOE6AO03V]

“We aim to minimise the size of share sale and we are also
considering other types of fund raising,” a Hana spokesman quoted
its chairman Kim Seung-yu as saying.

Sources told Reuters earlier that Hana was in preliminary
talks with private equity firms including Carlyle Group [CYL.UL]
and Kohlberg Kravis Roberts & Co (KKR.N: ) to fund the KEB
takeover.

Shares in Hana, which counts Goldman Sachs (GS.N: ) as its top
shareholder with 8.66 percent, closed up 5.7 percent on Thursday
at a one-year high of 40,900 won, easily beating a 1.7 percent
gain in the wider market (.KS11: ).

It was buoyed by expectations that the purchase of KEB, South
Korea’s top foreign exchange specialist, will strengthen its
competitiveness in the banking sector.

Hana had agreed last month to buy a 51 percent of KEB from
U.S. private equity fund Lone Star [LS.UL].[ID:nSGE6AO059]

(Reporting by Ju-min Park; Editing by David Chance)

UPDATE 1-Hana Fin seeks investors to fund $4.1 bln KEB buy