Final bids pushed to early June; preferred bidder selection delayed
Package deal vs. split sale structure remains key variable
Combined entity valued at around 1 trillion won
The final bid deadline for the sale of Acuon Capital and Acuon Savings Bank has been pushed back to early June.
According to investment banking industry sources Monday, the deadline for final bids was moved from May 29 to June 5, about a week's delay.
Although bidders were given roughly two months of due diligence following the preliminary bid in late March, prospective buyers requested additional time to review the assets, prompting the schedule adjustment. A preferred bidder is now expected to be selected as early as next week.
The asset on the block is a 96.6 percent stake in Acuon Capital held by Swedish private equity fund EQT Partners. Acuon Savings Bank is a wholly owned subsidiary of Acuon Capital, and the transaction has been structured as a package deal covering both entities.
Following the preliminary bid, the shortlist of qualified acquisition candidates includes Hanwha Life, Meritz Financial Group and Baikal Investment. Hanwha Life and Meritz Financial Group are understood to be focused on acquiring Acuon Capital to strengthen their capital portfolios, while Baikal Investment is more interested in Acuon Savings Bank.
The market has priced the combined sale of Acuon Capital and Acuon Savings Bank at around 1 trillion won (approximately $662 million). The two companies' combined book equity stood at 1.209 trillion won as of the end of last year. Applying a price-to-book ratio of 0.8 times yields a valuation of roughly 1 trillion won, though the actual price could vary depending on the deal structure.
The extended due diligence period is largely attributed to uncertainty over the sale structure. Because prospective buyers are split in their interest — some targeting the capital arm, others the savings bank — a separate sale of the two entities, rather than a package deal, has consistently been raised as a possibility.
Since valuation methods differ depending on the sale structure, buyers have found it necessary to conduct detailed due diligence across multiple scenarios. Regulatory approvals and financing arrangements would also differ under each structure.
Acuon Capital was founded in 2006 as KT Corp's capital financing unit. In 2015, U.S. private equity fund JC Flowers acquired the stake in KT Capital for around 300 billion won and rebranded it as Acuon Capital. JC Flowers subsequently acquired HK Savings Bank and renamed it Acuon Savings Bank, then merged Doosan Capital into Acuon Capital to expand the business.
JC Flowers sold Acuon Capital to what was then Baring Private Equity Asia for around 700 billion won in 2019. In 2022, Baring PEA merged with EQT Partners, the Swedish global private equity fund, forming the current ownership structure.
By Park Ji-young
park.jiyeong@heraldcorp.com
