Hanwha Life Insurance agreed to buy a controlling stake in Acuon Capital for 440 billion won ($325.4 million), filling a gap in its financial services portfolio as it expands beyond insurance.
Hanwha Life will take 50.54 percent of the lender, while a fund managed or established by Centroid Investment Partners will buy a further 49.39 percent, according to a regulatory filing Wednesday. Hanwha Life owns 15 percent of Centroid, making it the private equity firm's second largest shareholder.
Acuon Capital specializes in corporate and investment finance as well as equipment financing. It had 4.6 trillion won in assets at the end of June, according to Hanwha Life. Its wholly owned Acuon Savings Bank, with 5.1 trillion won in assets, would become an indirect Hanwha Life subsidiary once the deal closes.
The purchase gives Hanwha Life its first capital company alongside its insurance, securities, asset management and savings bank businesses. The firm expected combining Acuon Savings Bank with Hanwha Savings Bank would create a savings bank group with about 6.5 trillion won in assets.
Separately, Hanwha Life said its board approved a 250 billion won investment in a share offering by Hanwha Investment & Securities on Wednesday. Its wholly owned subsidiary Hanwha Asset Management plans to contribute another 250 billion won. The capital increase is intended to help the brokerage qualify as a comprehensive investment bank, the company said.
"This investment marks an important turning point in our move beyond insurance toward a comprehensive financial group," a Hanwha Life official said. "We will offer customers a broader range of financial services spanning insurance, securities, asset management and lending."
A closing date has yet to be set for the deal, which awaits regulatory approval.
jwc@heraldcorp.com
