Saemaeul Geumgo Central Association Exercises Preemptive Purchase Right to Acquire M Capital

"Expectations for Business Area Expansion and Comprehensive Financial Services Provision"

Saemaeul Geumgo Central Association announced on the 18th that it held a board meeting and decided to exercise its preemptive purchase rights for M Capital.

The Central Association secured preemptive purchase rights, which allow it to purchase 98.37% of M Capital's shares, by investing as a limited partner (LP) in the private equity fund (PEF) formed in 2020 to acquire M Capital.

M Capital, established in 1997, is a specialized credit finance company primarily engaged in industrial and corporate finance. The Central Association explained that since M Capital mainly serves self-employed individuals and small and medium-sized enterprises, it is expected to create synergy effects through cooperation with Saemaeul Geumgo, a financial institution for low-credit and low-income individuals.

To thoroughly review the exercise of the preemptive purchase rights, a dedicated internal team was formed last October, and to determine an appropriate acquisition price, a major domestic accounting firm and law firm were selected to conduct a detailed due diligence of M Capital's overall operations.

The Central Association plans to complete the acquisition of M Capital in the first half of next year after filing for corporate merger approval and other procedures.

A representative of Saemaeul Geumgo Central Association stated, “Through the acquisition of M Capital, we expect to expand Saemaeul Geumgo’s business areas and provide comprehensive financial services to customers,” adding, “Furthermore, by offering financial services to low-credit groups in financial blind spots, we will be able to contribute to revitalizing the local economy.”