SBI Stake to Exceed 20%
Chairman Shin's Allied Stake Surpasses Majority
Holding Company Transition Requirements Met
Japanese financial group SBI Holdings has received approval from financial authorities to invest in shares of Kyobo Life Insurance. The pace of Kyobo Life Insurance's transition to a holding company is expected to accelerate.
On December 22, SBI Holdings announced that South Korean financial authorities have approved its plan to acquire more than 20% of Kyobo Life Insurance's shares. SBI Holdings intends to purchase shares held by the Ontario Teachers’ Pension Plan (OTTP) and foreign special purpose companies (SPCs), increasing its stake from the current 9% to over 20%.
According to the industry, back in March, when SBI Holdings acquired a 9.1% stake in Kyobo Life Insurance from Affinity Equity Partners, the company stated its intention to expand its stake to 20% by acquiring shares from other financial investors in Kyobo Life Insurance. The authorities have now approved this plan.
After the acquisition, SBI Holdings will become the largest external shareholder of Kyobo Life Insurance, excluding the founding family led by Chairman Shin Changjae. Chairman Shin currently holds a 33.78% stake. Including related parties and SPCs, his total stake amounts to 46.19%.
Following this transaction, it is expected that Chairman Shin’s allied stake will exceed the majority threshold, further accelerating the transition to a holding company structure.
As a result, Kyobo Life Insurance is expected to speed up its transition to a holding company. In order to make this transition, the company needs approval from financial authorities as well as a special resolution with at least two-thirds of shareholders present voting in favor at the general shareholders’ meeting.
Kyobo Life Insurance attempted to transition to a holding company in 2023, but the plan was derailed due to a dispute over a put option with its second-largest shareholder, Affinity. The dispute was resolved when SBI Holdings acquired Affinity’s stake.
SBI Holdings first acquired approximately 5% of Kyobo Life Insurance's shares in 2007, and since then, the two companies have collaborated on key businesses such as digital finance. Separately from this transaction, Kyobo Life Insurance has agreed to acquire a 50% plus one share stake in SBI Savings Bank, a subsidiary of SBI Holdings, by October next year for approximately 900 billion won.
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