SangSangin Savings Bank has been sold to KBI Group.
On October 31, SangSangin Group announced that it would sell a 90.01% stake (12,240,001 shares) in SangSangin Savings Bank to KBI Group. The sale amount is 11.07 billion won.
The two companies signed a stock purchase agreement (SPA) on the same day. Through a public disclosure, SangSangin Group explained that the sale was to comply with the Financial Services Commission's order to dispose of shares and to secure investment funds.
SangSangin Savings Bank is a mid-sized savings bank, ranking among the top 10 in the industry by asset size. The sale was pursued due to issues related to the eligibility requirements for the largest shareholder of SangSangin Group.
In March of this year, its asset quality deteriorated, leading to a management improvement recommendation, which is a type of prompt corrective action. Recently, the company also held negotiations with OK Financial Group regarding a sale, but the talks fell through.
KBI Group began as a textile manufacturer and is now engaged in businesses such as automotive parts, construction and real estate, environment and energy, and healthcare.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
