As many as 18 local financial institutions and private equity funds from home and abroad and Anbang Insurance Group of China have entered the preliminary bid for Woori Bank whose government stake of 30 percent has been offered in splinters of from 4 percent to 8 percent after four previous lump-sum privatization attempts all failed.

State-run Korea Deposit Insurance Corporation (KDIC) on Friday received letters of intent from potential bidders for its 30 percent stake in the country’s fourth largest bank ahead of the former auction in November. The 18 bidders included Korea Investment Holdings Co. and Hanwha Life Insurance Co., and China’s Anbang Insurance Group.

The fresh auction drew interest as the stake offering in pieces reduced the risk and investment burden. The winning bidder also could eye the next sale of remainder government stake of 18.09 percent to become a majority shareholder of a major bank in Korea. The remaining stake is expected to be out on the sale block in the second half of next year.

Korea Investment Holdings is dubbed as a winning candidate. It could become a competitive financial group with a major bank under its arm. The company’s chief executive Kim Nam-Goo is referred as being among the most reliable and competent financiers in Korea. Korea Investment Holdings is said to have applied that it was interested in taking up full available 8 percent.

Domestic funds, Hahn & Company, H&Q Asia Pacific Korea and IMM Private Equity, and foreign private equity fund firms such as Affinity Equity Partners, CVC Capital Partners and Orix Private Equity have also handed in their LOIs.

Woori Bank shares ended Friday at 11,350 won ($10.29), up 1.3 percent from the previous session.

By Chung Seok-woo and Kim Hyo-hye

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]