KBI Group will submit this week the review documents to the Financial Supervisory Service to finalize its acquisition of Sangsangin Savings Bank. Since last month, KBI Group has shared a draft of its post-acquisition business plan with the Financial Supervisory Service to identify areas needing supplementation. Once KBI Group formally submits its business plan to the Financial Supervisory Service, it will complete the acquisition of Sangsangin Savings Bank after the eligibility review.
According to the financial industry on the 23rd, KBI Group is said to have expressed its intention to make a final submission of the business plan—documents for the review of the acquisition of Sangsangin Savings Bank—to the Financial Supervisory Service on the 24th. KBI Group included in the business plan that it would proceed with a capital increase for Sangsangin Savings Bank through a capital infusion, and the Financial Supervisory Service was also said to have judged the plan appropriate.
To acquire a financial company, an eligibility review of the largest shareholder by the Financial Supervisory Service is required. This involves submitting the creditworthiness of the corporations or representatives pursuing the acquisition, and any financial crime history of the representatives, to the Financial Supervisory Service. At the same time, a business plan that includes how the company will be operated after the acquisition must also be submitted.
Among these, what the Financial Supervisory Service focuses on most is the business plan. In the case of the acquisition of Sangsangin Savings Bank, it is known to have first examined the future capital increase plan. Sangsangin Savings Bank received a prompt corrective action (management improvement recommendation) last year as its soundness deteriorated due to real estate project financing (PF) nonperforming loans, making it necessary to restore its management condition through a capital infusion.
KBI Group signed a stock purchase agreement (SPA) in Oct. last year to acquire 90% equity in Sangsangin Savings Bank for 110.7 billion won. KBI Group has since spent six months preparing for the acquisition review. After the Financial Supervisory Service completes its review, the acquisition is expected to be finalized at a regular meeting of the Financial Services Commission.
KBI Group is a mid-sized group consisting of 21 corporations. Its business spans a wide range of fields, including auto parts, steel pipe, construction, real estate, environment, energy, and health care.
An industry official said, "KBI Group's capital increase plan has been made more concrete, and it appears the final documents will be submitted soon."