Hana Financial wraps up financing for KEB takeover

Hana Financial announced that it has completed raising funds to acquire a 51.02 percent stake in Korea Exchange Bank.

The group is financing the US$4.19 billion buyout with internal funds and the proceeds from new share and bond sales.

 Hana Financial said it has raised US$1.3 billion won in share offering by selling 34.1 million common shares to 36 domestic and foreign investors at US$38 each, about 25 per cent of the money needed to buy KEB.

To help fund the KEB acquisition, the group received a combined dividend of US$1.965 billion from its flagship Hana Bank and unlisted brokerage affiliate. The group has also sold US$1.34 billion in bonds.

The group's deal to buy KEB will enable Hana Financial Group to become the country's No. 2 industry player with assets worth US$282 billion. The contract is subject to regulatory approval.