Who Will Take Over 'Aljja' JT Savings Bank JB Financial and Hanguk Capital? (Comprehensive)

JT Savings Bank Sale Main Bid D-1
JB Financial Urgently Needs to Strengthen Non-Banking Sector 'Leading Candidate'
Korea Capital Also Joins... Main Bid Tomorrow

[Asia Economy Reporter Kim Min-young] As the final bid for the sale of JT Savings Bank is scheduled for the 15th, 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 intention 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 intention as strong. Since his inauguration in March last year, Kim Ki-hong, chairman of JB Financial, has consistently expressed his intention for 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 diverse 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.

Possibility of the Only Competitor Korea Capital

Korea Capital is also expected to participate in the final bid, but JB Financial's strong will is overshadowing 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 intention.

JT Savings Bank was established in January 2015 when J Trust Group acquired Korea Standard Chartered Savings Bank. It has branches in Seongnam headquarters, Gwangju, and Mokpo in Jeonnam. As of the end of June, it is a medium-sized savings bank with total assets of 1.5345 trillion KRW and a net profit of 9 billion KRW. It employs 238 people. In 2015, J Trust Group acquired this savings bank for about 50 billion KRW. The expected sale price this time is known to be between 150 billion and 170 billion KRW, up to a maximum of 200 billion KRW.

Meanwhile, the JT Savings Bank Labor Union plans to hold a press conference at 2:30 p.m. on the 15th in front of the Government Seoul Office in Jongno-gu, Seoul, claiming that the management is ignoring their request for negotiations to conclude an employment stability agreement.