MBK Partners Ltd. has stalled its plan to sell its 59.19% stake in ING Life Insurance Korea Ltd. after another interested party pulled out of the US$2.3 billion deal, The Korea Times reported.
KB Financial Group Inc. decided to withdraw its bid as MBK Partners' asking price for ING Life's management rights is beyond the company's budget, according to the report, citing a KB official.
The news follows South Korea-based Shinhan Financial Group Co. Ltd.'s decision to withdraw its bid for the ING Life stake. The group cited differences over acquisition terms and price as the major reasons behind its decision to pull the plug on the deal.
With the sale being put on hold, MBK Partners activated "capital recapitalization" using its holdings in ING Life as collateral to offer returns to fund investors, according to the report.
