South Korea’s major institutional investors such as Korea Post and the Korean Teachers’ Credit Union (KTCU) have teamed up with a private equity fund to make specific bids this month for a share in Woori Bank whose government stake of 30 percent is up for grabs in splinters of 4 percent to 8 percent.

According to the investment banking industry on Wednesday, the public institutional majors are mulling to join a blind fund created by IMM Private Equity (PE) bidding for an interest in the country’s fourth largest bank whose privatization attempts in the past all failed. The government changed the sale program to offer its stake in pieces. The 16 bidders shortlisted from their letters of intent are required to hand in specific pricing and acquisition financing scheme by Nov. 11.

The IMM fund reportedly eyes about 6 percent stake in the bank after pooling in about 600 billion won ($524 million) from three to four institutional investors. National Pension Service (NPS), the big fish in the institutional league, could join the fund, according to sources.

Other bidders include strategic investors like Korea Investment & Securities Co., Kiwoom Securities Co., Hanwha Life Insurance Co. and Tongyang Life Insurance Co. as well as financial investors like Baring Private Equity Asia, Hahn & Co. and Affinity Equity Partners. They were given equal access to the bank’s financial sheets and assets to help them prepare their bids.

Korea Investment Holdings Co. is dubbed as the leading candidate as a bank entity could turn it into a major financial holding group and also supply a brick-and-mortar presence behind the Internet-only Kakao Bank consortium. Kiwoom Securities is also another eager bidder.

Woori Bank shares rose 0.4 percent to 12,400 won as of 14:01 p.m. in Seoul trading Thursday.

By Kang Doo-soon and Hong Jang-won

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