Hana Financial close to completing funding for KEB takeover

Hana Financial Group Inc., South Korea's fourth-largest banking group, said Saturday it has nearly completed funding for its acquisition of Korea Exchange Bank (KEB).

The banking group signed an agreement in November with U.S.-based Lone Star Funds to take over a 51.02 percent stake in KEB, the country's fifth-largest lender, for 4.7 trillion won ($4.21 billion).

According to Hana Financial, it plans to issue a mix of common and convertible stocks to 10 financial investors to raise up to 1.5 trillion won.

The plan will be subject to an approval by the holding firm's board of directors next week.

Also, the holding company raised half of the takeover fund from its internal capital, mainly dividends from Hana Bank, its flagship bank unit, and the remaining through its bond issuance in recent weeks.

The group's takeover of KEB is subject to financial regulators' approval, which is expected to come in late March or April. (Yonhap)