Reuters talks to portfolio managers and strategists to find what's on the horizon. Learn how to position your portfolio in the year ahead. Full Coverage
Kookmin seeks to sell back stake in ING Korea unit
SEOUL (Reuters) - Kookmin Bank 060000.KS is seeking to sell back its 14.9 percent stake in ING Group's (ING.AS) South Korean unit to the Dutch group, the bank said on Tuesday, as the lender converts into a holding company.
Kookmin (KB.N), South Korea's top retail lender, confirmed on Tuesday a report in domestic online news service eDaily that it intended to sell off the stake to ING (ING.N), which owns the remaining 85 percent of the unit, for around 600 billion won ($532 million).
The reported value of the stake is four times Kookmin's estimate in its half-year financial book.
"We are seeking such a plan but need further discussions," said a spokesman at Kookmin.
ING declined comment.
Kookmin in 1999 bought a 20 percent stake in ING Life Insurance Korea, but sold back a 5.1 percent stake to ING last year for 194 billion won after it bought half of another local insurer, KB Life.
The sale price was 50 percent above the value of the stake on Kookmin's books at the time.
Kookmin's possible stake sale in ING Life Insurance may signal further unwinding of cross-shareholding between the two companies, as the South Korean bank wants to boost non-banking operations under the holding company format.
ING owns 4 percent of Kookmin and 20 percent of a Kookmin fund management arm, as well as 49 percent of KB Life.
Kookmin, with assets of $200 billion, has been in talks with foreign institutions to sell off several stakes in itself, the CEO of Kookmin's soon-to-be-launched holding firm said September 9, in deals estimated to fetch a total of about $4 billion.
Separately, the Korea Exchange asked Kookmin to clarify by later Tuesday rumors that it was considering buying Eugene Investment & Securities (001200.KS), a small domestic brokerage.
Kookmin shares dropped 1.7 percent to 57,500 won by 0314 GMT, underperforming the steady wider market .
Trading in Kookmin Bank shares will be suspended on Thursday until Kookmin's holding company is listed on the Korea Exchange on October 10.
($1=1127.3 Won)
(Reporting by Kim Yeon-hee and Rhee So-eui; Editing by Jonathan Hopfner)
