Sweden’s EQT Companions, one in every of Europe’s largest non-public fairness companies, has launched the sale of Acuon Capital Corp. and Acuon Financial savings Financial institution Co., in what might turn into one of many largest financial-sector M&A offers in South Korea.
If profitable, the transaction would mark EQT’s exit from the Korean client finance house six years after it bought the 2 smaller monetary companies.
The mixed sale, which might fetch some 1 trillion gained ($690 million), is drawing curiosity from each home monetary teams and international non-public fairness traders.
In response to funding banking sources on Thursday, EQT Companions is promoting its 96% stake in Acuon Capital together with the capital firm’s 100% holding in Acuon Financial savings Financial institution.
UBS and Citigroup International Markets have been chosen as lead advisers for EQT.
“EQT is casting a large internet to gauge investor urge for food earlier than narrowing down potential bidders,” stated a senior funding banker concerned within the course of.
DAYEA YEON LEADS SALE OF ACUON FIRMS
Acuon Capital, previously KT Capital, and Acuon Financial savings Financial institution, beforehand HK Financial savings Financial institution, have been first acquired by US non-public fairness agency J.C. Flowers & Co. in 2015 and 2016, respectively.
UK-based Baring Non-public Fairness Asia (BPEA) purchased each corporations for about 700 billion gained from J.C. Flowers in 2019, and EQT inherited them when it acquired BPEA in 2022.
Dayea Yeon, a companion and head of Non-public Capital Korea within the EQT Non-public Capital Asia group, is overseeing the sale of the 2 Acuon companies. She additionally led the sooner BPEA acquisition.
HEALTHIER PLAYERS
Regardless of a sluggish market weighed down by property-related unhealthy loans, Acuon stands out for its relative well being.
The 2 corporations generated a mixed internet revenue of 33.1 billion gained within the first half of this 12 months, following a 76 billion gained revenue in 2024.
Acuon Capital posted a non-performing mortgage ratio of three.3% as of June, whereas Acuon Financial savings Financial institution’s determine stood at 6.4%, each beneath their trade averages.
Property underneath administration have additionally grown steadily.
Acuon Capital’s steadiness sheet expanded to 4.02 trillion gained this 12 months from 3.48 trillion gained in 2019, whereas Acuon Financial savings Financial institution’s belongings greater than doubled to five.37 trillion gained from 2.35 trillion gained over the identical interval.
When it comes to belongings, Acuon Capital Financial savings Financial institution ranks fifth within the Korean financial savings banking market, whereas Acuon Capital ranks seventeenth among the many native capital companies.
OPERATING RIGHT IN THE CAPITAL & SURROUNDING REGION
The sale is being intently watched throughout the monetary trade, the place consolidation has accelerated amid tightening regulation and rising funding prices.
Market watchers say Acuon’s Seoul-based financial savings financial institution is especially beneficial given regulators’ moratorium on new metropolitan-area licenses.
“Within the present surroundings, buying a financial institution with a license to function in Seoul and the metropolitan space is virtually the one approach to enter the market,” stated a market analyst.
WOORI FINANCIAL MAY BID FOR ACUON FIRMS
Potential bidders might embrace monetary holding companies with out a captive capital or financial savings financial institution subsidiary, reminiscent of Woori Monetary Group, which beforehand explored buying the mid-tier SangsangIn Financial savings Financial institution.
Mid-sized corporates or rival non-public fairness companies looking for to strengthen their Korean portfolios are additionally anticipated to bid for the Acuon companies.
Nonetheless, some bankers are skeptical that main monetary teams will bid aggressively.
“Korean monetary holding companies are underneath stress to spice up shareholder returns via dividends and buybacks, making it troublesome for them to commit some huge cash to a non-core acquisition,” stated an govt at a number one banking group. “Strategic synergy is restricted, so non-public fairness is extra prone to step in.”
