S. Korea's LIG Insurance chooses Goldman Sachs to advise on stake sale

SEOUL Wed Dec 18, 2013 10:11pm EST

SEOUL Dec 19 (Reuters) - South Korea's LIG Insurance Co Ltd has chosen Goldman Sachs Group Inc to advise on the sale of a controlling stake, two sources with direct knowledge of the matter said on Thursday.

The stake - worth 381.6 billion won as of the Wednesday close of LIG's share price - plus a management premium could value the sale at around 500 billion to 600 billion won ($475.62 million to $570.75 million), local media reported on Thursday.

Largest shareholder Koo Bon-sang and other shareholders are considering selling 21 percent of the general insurer, LIG said in November in a regulatory filing.

Koo and other members of LIG's owning family are selling the stake to reimburse investors for losses sustained after buying debt issued by an affiliate construction company.

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