Singapore-based alternative investment firm Hillhouse Investment has been selected as the preferred bidder to acquire Korea’s Igis Asset Management, a major real estate investment manager, industry sources said Monday.
Morgan Stanley and Goldman Sachs, the lead managers for the sell-off, have given notice that Hillhouse has been selected as the preferred bidder to acquire Igis with an offer of 1.1 trillion won ($748 million), sources said. Hillhouse will be acquiring a 98.8 percent stake in the company.
Hillhouse plans to acquire Igis through Samty Holdings, a Japanese property developer that its real estate investment arm Rava Partners acquired last year.
Regulatory approval remains a key hurdle for the acquisition to close. An entity seeking to become a major shareholder of a financial investment business must undergo the Financial Services Commission’s eligibility review, in which the nation’s top financial regulatory authority examines the buyer’s financial stability, history of legal violations and other governance-related factors.
If Hillhouse gains the regulatory nod, the deal is expected to close within the first half of next year.
Hillhouse, headquartered in Singapore, was founded in 2005 by CEO Lei Zhang, who launched the firm with $20 million in seed capital from Yale University’s endowment.
The firm invests globally with a focus on Asia and is known for its early bets on China's Tencent. It has been affiliated with Korea since 2007, including investments in SK On, SK Eco Prime, Woowa Brothers, Kurly and Krafton.
silverstar@heraldcorp.com
