Multiple letters of intent have been received for the preliminary bid to acquire YeByeol Non-Life Insurance, the bridge insurer for MG Non-Life Insurance.
According to the financial industry on the 23rd, two or more corporations submitted letters of intent for YeByeol Non-Life Insurance's preliminary bid, which closed at 5 p.m. that day. The Korea Deposit Insurance Corporation (KDIC) plans to conduct due diligence to determine whether the corporations that submitted letters can operate YeByeol Non-Life Insurance normally.
The deposit insurer plans to finalize by the 30th a shortlist of acquisition candidates that meet internal criteria, then provide five weeks for due diligence and receive detailed management plans for YeByeol Non-Life Insurance. After reviewing the management plans, the deposit insurer will begin the main bid in March to select a preferred bidder.
MG Non-Life Insurance has attempted a sale five times since 2022, but all fell through. Last year as well, Meritz Fire & Marine was selected as the preferred bidder, but the deal did not reach finalization.
Under last year's agreement with the MG Non-Life Insurance labor union, the deposit insurer will make a final attempt this year to sell YeByeol Non-Life Insurance. If the sale falls through again, all contracts held by YeByeol Non-Life Insurance will transfer to the five major non-life insurers—Samsung Fire & Marine, Meritz Fire & Marine, DB Insurance, KB Insurance, and Hyundai Marine & Fire Insurance.
With two or more would-be acquirers appearing in this preliminary bid, the sale has received an initial green light. The sale is being conducted as a competitive bid under the National Contract Act, so a main bid is possible only if there are two or more would-be acquirers.