Urgent Need to Strengthen Non-Bank Sector Leading Candidate
Korea Capital Also Joins... Main Bidding Tomorrow
JT Savings Bank Headquarters in Seongnam-si, Gyeonggi-do
[Asia Economy Reporter Kim Min-young] As the final bid for the sale of JT Savings Bank is scheduled for the 15th of this month, the competition is narrowing down to a 'two-horse race' between JB Financial Group and Korea Capital under the Military Mutual Aid Association. In particular, it is known that JB Financial, which urgently needs to strengthen its non-bank sector portfolio, has a strong will to acquire.
According to the financial sector on the 14th, the final bid for the sale of JT Savings Bank, headquartered in Seongnam, Gyeonggi Province, is just one day away. This sale is being attempted by the Japanese major shareholder J Trust Group about five years after acquiring JT Savings Bank. JB Financial, which has Jeonbuk Bank and Gwangju Bank as affiliates, and Korea Capital, whose major shareholder is the Military Mutual Aid Association, are expected to participate.
After news of the JT Savings Bank sale was announced, domestic loan company Leadcorp and management participation private equity fund (PEF) MBK Partners also showed interest in acquisition but reportedly withdrew at the last minute.
Leading Candidate JB Financial Group... Desperate for M&A
The market sees JB Financial's acquisition intent as strong. Since his inauguration in March last year, JB Financial Chairman Kim Ki-hong has consistently expressed his intention to pursue mergers and acquisitions (M&A) in the non-bank sector. Although JB Financial is a financial holding company, it only has JB Woori Capital and JB Asset Management as affiliates outside of banking, lacking securities firms, insurance companies, and savings banks. Strengthening the non-bank sector is necessary for diversified revenue generation. Since Chairman Kim's inauguration, JB Financial has only acquired a securities company based in Vietnam, with no significant M&A achievements domestically.
JT Savings Bank operates mainly in Gyeonggi Province and Jeolla Province, aligning regionally with JB Financial, which is another reason JB Financial is considered a strong acquisition candidate.
The Only Competitor: Korea Capital
Korea Capital is also expected to participate in the final bid, but JB Financial's strong will seems to overshadow it. An industry insider said, "For JB Financial, which needs to increase its non-bank affiliates, JT Savings Bank is considered an attractive asset, and they might be willing to offer a price higher than the market value to acquire it."
A JB Financial official said "no comment" regarding the acquisition but did not deny participation in the final bid or acquisition intent.
JT Savings Bank was established in January 2015 when J Trust Group acquired Korea Standard Chartered Savings Bank. It has its headquarters in Seongnam and branches in Gwangju and Mokpo, Jeollanam-do. As of the end of June, it is a mid-sized savings bank with total assets of 1.5345 trillion KRW and a net profit of 9 billion KRW. It employs 238 people. The expected sale price is known to be between 150 billion and 170 billion KRW, with a maximum of 200 billion KRW.
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