Shinhan Fin to buy 85% of LG Card for $7.5bn

SEOUL: Shinhan Financial was selected as the leading bidder to buy LG Card, the main creditor of South Korea’s top card issuer said on Wednesday, in what would be South Korea’s biggest takeover.

The size and value of rival bids were not immediately disclosed, but a source close to the deal told Reuters prior to the official announcement that Shinhan was buying an 85% stake in LG Card for $7.5bn. That is far more than had been expected and would top Kookmin Bank’s planned $7.34bn takeover of Korea Exchange Bank.

“Shinhan was ahead of others in both price and non-price factors,” said Kim Jong-bae, deputy governor of Korea Development Bank (KDB) which is overseeing the sale. “It offered the highest price,” he told reporters, declining to be more specific.

LG Card is considered a prize in South Korea’s maturing financial sector, with 10m customers — more than a fifth of the population — and a strong brand.