Lotte Non-Life Insurance hit the upper price limit early in the session on talk that a major financial group is reviewing an acquisition.
As of 9:39 a.m. on the 29th, Lotte Non-Life Insurance was trading at 2,245 won on the main bourse, up 516 won (29.84%) from the previous session.
With the sale of Lotte Non-Life Insurance moving into full swing, expectations for mergers and acquisitions (M&A) appear to be reflected in the share price. In financial circles, Shinhan Financial Group and Korea Investment Holdings are said to be internally reviewing a bid for Lotte Non-Life Insurance. However, whether they will proceed with an acquisition has not yet been decided.
JKL Partners, the largest shareholder of Lotte Non-Life Insurance, is reported to be pushing for a public sale in Aug. There is also speculation in the industry that potential buyers' interest has increased as the desired sale price has recently come down from earlier levels.
Shinhan Financial is mentioned as a candidate because it could bolster a relatively weaker non-life insurance portfolio compared with KB Financial. Korea Investment Holdings is also seen as a possible bidder as part of efforts to expand into insurance.
In the insurance industry, there is an outlook that M&A in the sector will pick up in the second half as the sales of not only Lotte Non-Life Insurance but also YeByeol Non-Life Insurance and KDB Life proceed simultaneously. However, whether a transaction is actually concluded is expected to hinge on variables such as the sale price and the capital-raising burden after an acquisition.