Home

Texas Private Equity Firm Reaches Deal to Unload the Troublesome Korean Bank
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

South Korea may be a hot market for US law firms seeking to break new ground in Asia these days, but for several years its been a new legal quagmire for a Dallas-based private equity form that brought a controlling stake in one of the country’s biggest financial institutions for $1.5 billions in 2003.

Now that the private equity shop, Lone Star Funds, appears to be close to resolving its problems. The Lone Star reached a revised agreement this week to sell a 51 percent stake in Korea Exchange Bank, the largest foreign exchange bank is South Korea, to Hana Financial Group for $3.5 billion.

  
What
Where


The announcement comes about a year after Lone Star and Hana first announced a deal under which the latter would acquire the former’s state in KEB, which was founded as a government-owned institution in 1967.

The initial agreement with Hana, which has actually been mored in legal and regulatory proceedings, came after Lone Star’s two previous attempts to unload KEB fell. The failed transactions include a potential $7.3 billion sale to South Korea’s KB Kookim Bank in late 2006 and a $6.3 billion sale to HSBC Holdings in late 2008.

According to The Wall Street Journal, to get the latest deal done, Lone Star agreed to slash the asking price for its KEB stake by 11 percent. Even at the discounted price, Lone Star stands to make a hefty profit from the sale of KEB.
Skadden, Arps, Slate, Meagher & Flom and South Korean firm Kim & Chang took the lead in advising Lone Star on its initial investment, with additional outside counsel provided by British from Simmons & Simmons and Australian firm Minter Ellison . (A new team of team of lawyers from Akin Gump Strauss Hauer & Feld, Bryan Cave, and South Korean firm Shin & Kim advised KEB on its sale to the Lone Star.)

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




A spokeswoman for Skadden, which represented Lone Star on a related disposition of a US -based KEB subsidiary, told The Am Law Daily in an e-mail on Friday that the firm had to role advising on the current sale of KEB to Hana. Representatives for the Magic Circle firms Allen & Overy and Linklates, which have advised on several other aborted transactions by Lone Star and by KEB, respectively, did not respond immediately to requests for comment on whether their firms were involved in the current deal.

Also, Kim & Chang did not immediately respond to a request for a comment on whether it continues to represent Lone Star, but Asia Legal Business reported last year that the private equity shop had retained the firm for counsel on the ultimately unsuccessful sales to Kookmin and KSBC, and on the proposed sale to Hana.





 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

General Municipal Law Attorney with land use experience

USA-CA-Oakland

Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Immigration Attorney with portable business

USA-VA-McLean

McLean office is seeking an immigration attorney with $500,000+ in portable business.

Apply Now

Commercial Litigation Attorney with 4+ years of experience

USA-IL-Chicago

Chicago office of our client seeks commercial litigation attorney with 4+ years of experience. The c...

Apply Now

RELEVANT JOBS

Litigation Associate (Junior to Mid-Level) - Medical Malpractice - Garden City, NY

USA-NY-Garden City

Defense firm seeking junior to mid-level associate for Garden City office to fill Medical Malpractic...

Apply now

Experienced Insurance Defense Attorney Needed

USA-NY-Bohemia

Insurance Defense firm (with 15 attorneys in Suffolk and Mineola location), seeks attorneys with 5+ ...

Apply now

CIVIL LITIGATION ATTORNEY - Employment

USA-CA-Fresno

Lang, Richert & Patch a Fresno area AV-rated law firm located in the highly desirable Fig Garden Fin...

Apply now

ASSOCIATE ATTORNEY

USA-TX-Houston

INSURANCE DEFENSE / TRANSPORTATION LITIGATION Law firm located in North Houston seeking an associ...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top