Vogo, Tstobe, MBK participate in South Korea's Woori auction

Vogo and TStone have reportedly confirmed their participation in the auction, which has been stalled since December of last year due to a lack of interest from both local and global investors. After the auction process was restored in May, the government set a June 29 deadline for bidders to submit letters of intent to buy at least 30% of Woori.

Previously, The Carlyle Group, Macquaire, MetLife, KT telecom Posco and a group led by Woori employees also expressed interest in the stake. Considering the deal's size, funds may partner with other financial institutions to raise money for the bid.

Since the 1997 Asian financial crisis, the group’s performance has steadily decreased, evenutally leading its capital adequacy ratio to fall below the Basel I accord mandate. This circumstance prompted the South Korean government to acquire the majority shares of the company, the country's second-largest financial group by assets, in a bid to save the bank.

The administration of Korea's President Lee Myung-bak had previously pledged to reduce its holdings in the group, leading to this privatization push. However, like other government plans to divest shares in financial groups like KB Financial Group and Hana Financial Group, regulation that would facilitate a faster divestment process was blocked by the political opposition.

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• Topics
• Buyout
• Buyouts
• Regulation
• North Asia
• Financials
• MBK Partners
• Vogo Investment