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BKL Advises Hana Financial Group on KRW 1.3 Trillion Share Offering to Finance Acquisition of Korea Exchange Bank


BKL has advised Hana Financial Group (HFG), parent of Hana Bank, in its successful issue of KRW 1.3 trillion (approx. US$1.2 billion), of common stock to a large group of Korean and international investors. Completed on February 21, 2011, the private sale of some 31 million shares in Korea Exchange-listed HFG, for roughly 13% of its enlarged share capital, marks one of the largest follow-on offerings in Asia (ex-Japan) over the past year. It is also the largest equity private placement in Korea ever, and the first primary issue in Korea to involve such a range of investors.

The proceeds are to help finance HFG’s impending US$4.1 billion acquisition of the 51% stake in Korea Exchange Bank held by Lone Star, the US private equity firm. HFG’s subsidiary Hana Bank is the 4th largest bank in Korea (in assets). If completed, the takeover of 5th-ranked Korea Exchange Bank will constitute HFG the 3rd largest banking group in the nation.

The BKL team advising on the share sale was led by partners Sky Yang and Seung Hwa Hwang of BKL’s Securities & Finance practice group, and included associates Eun Joo Kang and Tae Ki Lee, foreign legal advisor Steve Kim, and securities expert Hae Sin Chung. Credit Suisse acted as sole placement agent for the issue.

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