Shinhan Financial to acquire LG Card

08/16/06 - newratings.com

LONDON, August 16 (newratings.com) - Shinhan Financial Group Ltd (SHG), the second-largest financial services company in South Korea, was chosen on Wednesday as the preferred bidder for LG Card.

Kim Jong Bae, deputy governor of Korea Development Bank, which is the main creditor of LG Card, said that Shinhan Financial was chosen as the preferred negotiator to acquire LG Card. Bae added that the deal is expected to be finalised in October. Although no price related to the deal was disclosed, Bloomberg quoted Yonhap news agency as saying that Shinhan Financial intends to acquire an 85% stake in LG Card for nearly 68,000 won per share, which values the deal at $7.5 billion. Associated Press quoted Shinhan Financial as saying that it intends to operate LG Card as a separate unit for two years and then merge it with its Shinhan Card unit.