MBK Partners reattempting to sell majority stake in ING Life Insurance

South Korea’s private equity fund MBK Partners has approached financial majors to shed its majority stake in ING Life Insurance Korea after several failures due to the hefty price tag and uncertain outlook on insurance industry, according to knowledgeable sources.

KB Financial Group and Hana Financial Group are potential bidders that can afford the stake - 59.15 percent worth around 2 trillion won at Thursday’s closing price of the insurer - which could go up to 3 trillion won ($2.8 billion) when counting the premium for management right. Both are relatively weak in insurance business. The private equity firm is also looking for overseas buyers.

Shares of ING Life Insurance closed Friday 4.9 percent higher at 42,800 won.

MBK has been trying to sell ING Life it bought from Dutch group in 2013 at 1.84 trillion won as the five-year contract on trademark rights ends by the end of this year, which means the insurer must change its corporate identity. Talks to sell the stake to Shinhan Financial Group fell through earlier this year due to differences in price terms.

Attempt to sell the stake via an auction in 2016 also flopped after Chinese bidders pulled out amid tensions over antimissile system. MBK instead made ING Life go public last year to add its appeal.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]