RETAIL BANKING | Cesar Tordesillas, Korea

Lone Star to cut KEB deal by 11%

Lone Star has agreed to cut the price of its 4.4 trillion won stake sale in KEB to Hana.

Hana Financial Group and the U.S. private equity fund had agreed to lower the purchase price by about 1,490 won per share, or about 11 percent, to 3.9 trillion won, reports Reuters.

Hana, South Korea's No.4 financial services group by assets, had originally agreed to pay about 13,390 won per share for a 51 percent stake in Korea Exchange Bank from Lone Star.

It had sought to close the transaction early this year but had to extend it due to regulatory approval delays and legal disputes involving stock manipulation charges against Lone Star.

Following a guilty verdict on stock manipulation charges, regulators last month ordered the Dallas-based fund to sell down its stake in KEB to below 10 percent within six months.

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