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GIC, Canada Fund Among Bidders for US$1.4-billion Kyobo Stakes: Source

Source: Reuters

Government of Singapore Investment Corp (GIC) and Canada’s Ontario Teachers Pension Plan are among final bidders to buy stakes in South Korea’s unlisted Kyobo Life Insurance, sources said, in deals worth up to US$1.4 billion (S$1.8 billion).

Daewoo International Corp and state-run Korea Asset Management Corp (Kamco) are offering about a one-third stake in the life insurance company in two separate sales. The final bids for the stakes were made on Tuesday, the sources, who had direct knowledge of the matter, told Reuters.

Local media reported on Wednesday that Carlyle Group made a competing bid for the larger Daewoo stake.

GIC has teamed up with Affinity Equity Partners to buy the 24 per cent stake in Kyobo held by Daewoo, one of the sources said, while Carlyle has bid with the United Arab Emirates sovereign wealth fund, the Korea Economic Daily reported.

Affinity and Ontario Teachers Pension Plan also submitted separate bids for Kamco’s 9.93 per cent stake, a second source said. Kamco was established to oversee non-performing assets in the Korean financial sector.