Forecast, MG Sonhae Insurance 3rd Public Sale Announcement

The Korea Deposit Insurance Corporation (KDIC) announced on the 12th that it will conduct a preliminary bidding for MG Insurance until April 11.

KDIC will provide due diligence opportunities to qualified bidders among those who have submitted letters of intent to acquire, and will proceed with the main bidding thereafter.

Unlike typical insurance company sales, this transaction is a deal supported financially by KDIC, meaning the acquirer's burden is relatively low, according to KDIC. In the past, financial support from KDIC was also provided during the resolution of insolvent financial institutions.

The sale of MG Insurance can be participated in either through a stock sale (M&A) or a portfolio acquisition (P&A) method, depending on the acquirer's preference. The stock sale (M&A) method involves acquiring all company shares, while the portfolio acquisition (P&A) method involves transferring MG Insurance's insurance contracts and high-quality assets. In both cases, financial support from KDIC can be provided.

KDIC stated, "Together with the sale lead manager, accounting, and legal advisors, we will concentrate all our capabilities on normalizing the insolvent financial institution MG Insurance."

The major shareholder of MG Insurance is JC Partners, but after being designated as an insolvent financial institution in April 2022, a public sale led by financial authorities has been underway. KDIC is conducting the public sale under the delegation of the Financial Services Commission, and although attempts were made twice last year to sell the company, both attempts failed.