South Korea-based Shinhan Financial Group Co. Ltd. signed a stock purchase agreement to acquire a 59.15% stake in Orange Life Insurance Co. Ltd., formerly ING Life Insurance Korea Ltd., from private equity firm MBK Partners Ltd.
The agreement was signed with Life Investment Ltd., a special purpose company set up by MBK Partners.
The board of Shinhan Financial on Sept. 5 approved the purchase of 48.5 million common shares of Orange Life Insurance for 2.299 trillion won, or 47,400 won per share.
Moody's on Sept. 5 affirmed its A1 long-term and Prime-1 short-term foreign-currency issuer ratings on Shinhan Financial, after taking into account the impact of the acquisition on the company's leverage. The rating agency expects that Shinhan Financial will be able to service its fixed interest burden without increasing the dividend pressure on its key units, including Shinhan Bank Co. Ltd. and Shinhan Card Co. Ltd.
As of Sept. 4, US$1 was equivalent to 1,118.82 South Korean won.