Prudential, Woori in mix for Tong Yang stake - report

Sources close to the firm tell Reuters that Vogo Fund may sell its full stake in the company, a subsidiary of mid-size South Korean conglomerate Tong Yang Group, which could be worth KRW1 trillion ($888 million). Domestic media further reported that Canada's Manulife is also eyeing the asset.

Reports surfaced in October that Vogo Fund was approaching domestic and overseas investors with a view to unloading 18% of its stake, though sources have since indicated that it may divest its full holding.

Vogo initially invested in Tong Yang Life Insurance in 2006, taking a 17% stake. It acquired a further 46.5% stake in November 2010 for KRW900 billion.

Prudential has considered other Asian assets in recent years. In 2010, AIG sought to sell Taiwan-based Nan Shan Life Insurance to Prudential for $35.5 billion, but that price tag was deemed too high by Prudential's shareholders. A consortium led by Primus Financial Holdings was later close to sealing the deal, but Taiwanese regulators rejected its $2.15 billion bid.

Woori, Korea's third-largest lender, has itself been subject to takeover bids, though a sale has not neared a close. In August, the Korean government suspended the auction of its 57% stake in Woori Finance Holdings after MBK Partners materialized as the sole bidder for the asset. This was the second time the government tried and failed to exit its holding in Woori. The government first sought to sell the asset - valued at around $6 billion - a year ago, but the auction stalled in December due to a lack of competitive interest. In May, the government restarted the auction process, requesting that bidders target at least 30% of the holding.

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• Topics
• North Asia
• Financing
• Exits
• South Korea
• Financial Services
• Exit
• Trade sale
• Vogo Investment