Press Release
Privatization Plan for Woori Bank
The Public Funds Oversight Committee deliberated and approved on June 23 the privatization plan for Woori Bank.
Basic Direction
Woori Financial Holdings will be merged to Woori Bank.[1] The Korea Deposit Insurance Corporation(KDIC) will then sell its entire 56.97% stake in Woori Bank.
The stake will be put up for two-track sales separately but simultaneously: sale of the controlling 30% stake and sale of the remaining minority shares.
Detailed Plan
1. Sale of Controlling Stake
Out of KDIC’s 56.97% stake in Woori Bank, the controlling 30% will be put up for public bidding. The shares will be sold according to general M&A procedure[2].
2. Sale of Minority Shares
The remaining 26.97% of Woori Bank’s shares will be put up for competitive bidding for individual investors seeking investment profits. Bidders are allowed to make bids for minority shares of between 0.5% and 10%. As an incentive to draw more tenders, successful bidders will be given call options[3] to 0.5 shares per share. The sales process[4] will proceed in a swift manner skipping preliminary bidding and price adjustment procedures.
Schedule
Public announcement on the sale will be made in September. The bid will be closed at the end of November. Final bidders for controlling stake and successful bids for minority shares will be decided by the end of 2014.
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For any inquiry, please contact Foreign Press & Relations Team at fsc_media@korea.kr
[1] The remaining entity after the merger will be Woori Bank.
[2] public notice for sale → preliminary bid → binding bid → due diligence & price negotiation → approval by FSC → closing of sale
[3] Details will be finalized when public announcement of the sale will be made in September.
[4] Public announcement of sale → bid → closing of bid