Japan SBI Announces Additional Purchase of Kyobo Life Insurance Shares... "Targeting 20% Stake"

Affinity Shares Acquired in March
Additional Purchases from Other Financial Investors Announced

Japan's SBI Holdings is increasing its stake in Kyobo Life Insurance to over 20%. This move comes after acquiring shares from the private equity firm Affinity Equity Partners, which had settled a put option dispute with Kyobo Life Chairman Shin Chang-jae.

On the 16th, Japanese media outlets including Nihon Keizai Shimbun reported that SBI Holdings plans to raise its stake in Kyobo Life from the current 9.3% to over 20%. As a result, SBI Holdings will become the second-largest shareholder following Chairman Shin (33.8%), and Kyobo Life will become an equity-method affiliate of SBI.

Nikkei analyzed that "SBI Holdings aims to strengthen its insurance business, which lags behind its securities and banking operations, by incorporating a Korean financial company strong in digital capabilities as a subsidiary." The additional share acquisition is expected to involve a total investment of 100 billion yen (approximately 995.7 billion KRW), including previous investments.

SBI is expected to purchase shares from other financial investors (FIs). However, the 5.23% stake held by IMM Private Equity, which is still in conflict with Chairman Shin's side, is reportedly not part of the target. Previously, SBI Holdings acquired about 5% of Kyobo Life shares in 2007 but later sold them. In March, SBI purchased a 9.05% stake held by Affinity.

Since its founding in 1999, SBI Holdings has grown primarily through online securities and venture capital. It currently also owns life and non-life insurance companies and banks. In South Korea, SBI invested about 1.2 trillion KRW in 2013 to acquire Hyundai Swiss Savings Bank and developed it into SBI Savings Bank, the top savings bank in the country.