Hyosung Group has selected a consortium of STLeaders Private Equity and the Korean Federation of Community Credit Cooperatives as the preferred bidder for Hyosung Capital, according to the firm Tuesday.

Another local financial firm, WWG Asset Management, was selected as the second preferred bidder.

Hyosung plans to sell 8.84 million shares of Hyosung Capital (a 97.5 percent stake) and the sale price is estimated to be around 400 billion won ($338 million).

“We have selected preferred bidders after an internal review of major proposal conditions since the final bidding on Aug. 28,” Hyosung said. “The bidding price, funding plan and future management plans were important considerations.”

Once the sale of Hyosung Capital is completed, the reorganization of the governance structure of Hyosung Group will be completed.

Hyosung, which switched to a holding company system in 2018, is required to sell Hyosung Capital by the end of this year in accordance with the principle of separation of banking and commerce.

By Shin Ji-hye (shinjh@heraldcorp.com)