Too Early to Talk About KEB Stake Sale: Exim

By Na Jeong-ju

Staff Reporter

Export-Import Bank CEO Yang Cheon-sik said Wednesday the bank has not yet made a decision on whether to dispose of its 6.25 percent stake in Korea Exchange Bank (KEB).

As the third largest shareholder of KEB, the Eximbank has the ``tag along'' right to sell its KEB shares at the same price as KEB's majority stakeholder Lone Star.

Given Lone Star signed its 51.02 percent stake in KEB to HSBC at 18,045 won per share, Lone Star should sell the bank's KEB shares at the same price, if the Eximbank exercises its right.

``We haven't made any decisions on whether to sell our stake in KEB,'' Yang told reporters in Seoul. ``We will make the decision later considering the KEB share prices.''

The comments are viewed as an indication that the state-owned bank will delay its decision on whether to sell its KEB stake until the court delivers a verdict on Lone Star's alleged violation of laws. Lone Star agreed with HSBC to sell KEB, but South Korean regulators pledged it won't endorse the sale until the court ruling comes out.

Yang said. ``We will make the decision if HSBC completes its deal with Lone Star.''

The Seoul Central District Court is currently reviewing the Lone Star case, with many analysts forecasting the final verdict won't come before the end of 2008.

HSBC said it will apply for approval of the purchase to the Financial Supervisory Commission and the Fair Trade Commission after finishing due diligence on KEB.

jj@koreatimes.co.kr