Shinhan Financial to acquire LG Card in estimated 7.5 billion dollar deal

0 Comments | AFP, August, 2006

SEOUL (AFP) — South Korea's largest credit card issuer, LG Card, is set to be folded into Shinhan Financial Group (SFG), creditors said, in an estimated massive 7.5 billion dollar industry shake-up.

"SFG has been selected as the preferred bidder to acquire LG Card," said Korea Development Bank (KDB), the largest of the once-troubled card company's creditors.

KDB did not disclose the terms of the winning bid, but reports here say that SFG agreed to pay 68,000 won (70.5 dollars) per LG Card share and takeover at least 85 percent of 125 million shares from LG Card creditors.

This would value LG at 7.25 trillion won (7.5 billion dollars) but final terms for the sale would be fixed in October.

SFG had been competing with Hana Financial Group and National...