Pushing LG Card for Domestic Sale

Plans to sell LG Card to a domestic consortium centering on commercial banks are being pushed.

Also, the U.S.’ Franklin Templeton Investments announced that they earned profits from 12 institutional investors and accumulated 5.39 percent (6,483,554 shares) of LG Card’s shares, showing up as a new factor in this situation.

A superior authority of the Financial Supervisory Commission said yesterday, “Creditors and banks have made a domestic consortium and are discussing plans to take over LG Card. There is a high possibility that a consortium centering on one bank and other investors participating by investing their shares through pension funds will be created.”

This authority also said, “The creditors are making an effort to show the outlines of this sale plan before the end of the year. Foreign investors may participate in the consortium and a ‘beforehand takeover afterward settlement’ method may be introduced to advance the sale.” The financial industry feels that Hana Bank, which had showed interest in the takeover of LG Card at the consortium, will be the main axis of the consortium.

Relating to these matters, Kim Seung-yu, chairman of Hana Bank, announced on December 2, “I am interested in taking over a card corporation. Regarding LG Card’s case, selling it to a domestic consortium could be considered.”

On the takeover of LG Card, foreign institutions Citibank, HSBC (Hong Kong and Shanghai Banking Corporation) and England’s Standard Chartered Bank have shown interest.

LG Card has recently sent investment proposals through its sale lead manager Morgan Stanley, and following this, it is planning to send company information to both domestic and foreign companies which have shown intentions to taking it over starting in the beginning of next week.

witness@donga.com kyle@donga.com