* Daewoo to sell Kyobo Life stake for 245,000 won per share
* Affinity, GIC, Baring Private Equity and IMM to buy Kyobo
* Affinity to take largest portion at close to 10 pct-source
By Joyce Lee and Stephen Aldred
SEOUL/HONG KONG, Aug 8 A group of investors that
includes private equity fund Affinity Equity is buying a $1.1
billion stake in South Korea's unlisted Kyobo Life Insurance
from Daewoo International Corp, in what would be the
second-largest private equity backed deal in Asia ex-Japan this
Daewoo said in a regulatory filing on Wednesday that it has
agreed to sell its 24 percent stake for 1.2 trillion won ($1.06
billion), or 245,000 won per share.
Daewoo, part of the POSCO Group, had put its stake on the
block as part of a move to sell non-core assets. It did not
disclose in the filing who were the buyers of the stake.
The Daewoo-Affinity deal comes two months after South Korean
state-owned Korea Asset Management Corp (KAMCO) sold a near 10
percent stake in Kyobo Life to Ontario Teachers Pension Plan for
468 billion won ($414 million), or 230,000 won per share.
A Daewoo spokesman confirmed Affinity as one of the buyers,
but did not disclose the names of the other investors. Two
sources with direct knowledge of the matter told Reuters last
week the other buyers would be the Government of Singapore
Investment Corp (GIC), Baring Private Equity Asia and
South Korea's IMM Private Equity.
Affinity is set to take the largest portion with close to 10
percent of the 24 percent stake, with the others buying stakes
close to 5 percent each, one of the sources told Reuters.
The bid is not a consortium bid, as under local laws a
foreign entity cannot own more than a one-tenth stake of a South
Korean insurer without regulatory approval.
Daewoo accepted final bids in May for its stake in Kyobo
Life. Affinity, IMM and GIC declined to comment. Baring could
not be reached for immediate comment.
Macquarie and Woori Investment & Securities
are co-managers for the deal.
($1 = 1128.8500 Korean won)
(Reporting by Joyce Lee in SEOUL and Stephen Aldred in HONG
KONG; Editing by Denny Thomas and Muralikumar Anantharaman)