Shinhan Financial Group Co., a major South Korean financial holding firm, said Wednesday it will acquire a majority stake in Orange Life, formerly known as ING Life Insurance, for 2.29 trillion won ($2.04 billion).
The acquisition, which would make Shinhan Financial the nation's top financial group, is subject to regulatory approval, Shinhan Financial said in a regulatory filing.
Shinhan Financial will pay 47,400 won for each of 48.5 million shares, or the 59.15 percent stake, in Orange Life, according to the filing.
|An employee walks into the headquarters of Orange Life, formerly ING Life Insurance, in central Seoul on Wednesday. Shinhan Financial Group, a major financial holding firm here, said it planned to spend 2.29 trillion won ($2.04 billion) to acquire a majority stake in the insurance company. (Yonhap)|
As of Tuesday's closing, the 59.15 percent stake in Orange Life is valued at 1.68 trillion won, a premium of 610 billion won.
Orange Life is the nation's fifth-largest life insurer in terms of assets.
Private equity firm MBK Partners bought Orange Life from Dutch bank ING Groep NV for some 1.8 trillion won in 2013.
In a statement, Shinhan Financial said the acquisition will help it achieve a bigger presence in the nation's insurance market.
Reflecting this, Shinhan Financial Chairman Cho Yong-byoung stressed that the latest move can allow the group to maximize its corporate value.
Earlier in the day at a board meeting, Shinhan Financial decided to buy back 200 billion worth of the financial holding firm's shares. (Yonhap)