Oh Young-jin is The Korea Times' publisher and president. He began to work at The Korea Times in 1988 as a sports writer. Then, he worked as a reporter and later as editor at the City Desk, Business Desk and Politics Desk. He worked as chief editorial writer before taking the current position. He has a keen interest in politics as well as defense affairs.
Hana CEO accused of reneging on Lone Star battle
By Oh Young-jin
The union of the Korea Exchange Bank (KEB) has attacked Hana Financial for conspiring to help Lone Star, the Texas–based private equity fund, siphon off the nation’s wealth.
In a statement issued Wednesday, the union, which opposes the sale of KEB to Hana by Lone Star, said Hana failed to lower the price it will pay for the controlling stake in KEB from Lone Star as required in its price drop, thereby causing the outflow of precious national wealth overseas.
Hana used the media to float the wrong figures in order to check public reaction.
The union’s statement comes with a growing number of reports that Hana and Lone Star are close to a deal.
A Hana official said that the two sides are engaged in the final rounds of negotiations but declined to say how they narrowed their differences in price.
Some sources say that Hana would be lucky to see a 650 won or 5 percent reduction from 13,390 won per share, the price that the two sides agreed on. But they said it amounted to no discount whatsoever, considering the dividends of 1,510 won per share made on their original price of 14,250 won.
“The agreed price of 13,390 won didn’t fully reflect the portion subtracted through dividend payments,” one said. “If they agreed on a 650 won cut, it amounts to a delayed inclusion of the price cut that was already due.”
Hana appears to be anxious to close the deal because their terms of agreement that grants exclusive rights for purchase expired Wednesday at midnight.
Lone Star has about five more months to complete its sale of at least 41 percent of its 51-percent KEB stake in accordance with a court order.
“Hana blinked first and is blinking repeatedly,” one analyst said, adding that Lone Star should not be seen in a position of strength because it will find a hard time finding another suitor before the dead.ine expires, if the Hana deal falls through.
Hana is worried that unless its deal with Lone Star is consummated before the end of the year, its chance for the KEB acquisition will be as good as dead.