Shinhan Financial to acquire Orange Life for W2.29tr

Shinhan Financial Group Co., a major South Korean financial holding firm, said Wednesday it will acquire a majority stake in Orange Life, formerly known as ING Life Insurance, for 2.29 trillion won ($2.04 billion).

The acquisition, which would make Shinhan Financial the nation's top financial group, is subject to regulatory approval, Shinhan Financial said in a regulatory filing.

Shinhan Financial will pay 47,400 won for each of 48.5 million shares, or the 59.15 percent stake, in Orange Life, according to the filing.

An employee walks into the headquarters of Orange Life, formerly ING Life Insurance, in central Seoul on Wednesday. Shinhan Financial Group, a major financial holding firm here, said it planned to spend 2.29 trillion won ($2.04 billion) to acquire a majority stake in the insurance company. (Yonhap)

As of Tuesday's closing, the 59.15 percent stake in Orange Life is valued at 1.68 trillion won, a premium of 610 billion won.

Orange Life is the nation's fifth-largest life insurer in terms of assets.

Private equity firm MBK Partners bought Orange Life from Dutch bank ING Groep NV for some 1.8 trillion won in 2013.

In a statement, Shinhan Financial said the acquisition will help it achieve a bigger presence in the nation's insurance market.

Reflecting this, Shinhan Financial Chairman Cho Yong-byoung stressed that the latest move can allow the group to maximize its corporate value.

Earlier in the day at a board meeting, Shinhan Financial decided to buy back 200 billion worth of the financial holding firm's shares. (Yonhap)