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Temasek divests 9.6% stake in Hana Financial Group

  • Anita Davis
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Singaporean SWF Temasek Holdings has fully exited its 9.6% stake in Korean banking major Hana Financial Group for $607 million on the public market, at an approximate 3.5% discount to Hana’s last closing price.

The move prompted Hana shares to drop to a further 7.2% discount from its latest closing price to KRW33,000 ($29.20) - the lowest dip in price since Oct. 5, 2009. Temasek specifically sold its stake for a price of KRW33,400 ($29.70) a share, representing a lower figure than the SWF was initially slated to pay, which ranged between KRW34,300-35,550 ($30.36-31.46) a share, reports note. Hana, which outperformed expectations last week when it posted Q3 profit of KRW2,65.1 billion ($234.6 million), was trading at KRW37,300 as recently as last Friday. Credit Suisse acted as the deal's bookrunner.

Temasek took its stake in Hana following investments in early 2004 and late 2005. This week's sale comes as the SWF has moved to shore up its investments in a bid to strengthen its focus on commodities and power targets, reports note. Its exit in also comes as Hana looks to merge with Woori Financial Group, Korea's third-largest lender. That motion comes as the Korean government put its 57% stake in Woori up for auction in a process that could garner $6 billion.

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