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Government’s Woori Bank will be split and sold to multiple small investors

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The Public Fund Oversight Committee (PFOC), a body in charge of privatizing Woori Bank, held a meeting on Monday, August 22 and decided to sell the government’s 30% stake in Woori Bank to multiple buyers in smaller portions.

Since the latest announcement of Woori Bank privatization plan on July, last year, the government has been seeking and tapping numerous potential buyers of the bank’s controlling stake. However, the government found that it would be difficult to proceed with the plan of selling the controlling stake to a single buyer under the current market situation.

To such backdrop, the government decided to sell the shares in smaller portions ranging from 4% to 8% to multiple buyers. The shares up for sale this time is 30% out of 48.09% owned by the Korea Deposit Insurance Corporation (KDIC).

Minimum bidding volume is 4%, including the percentage of the shares bought in previously. In other words, if an investor has already acquired 2% of Woori Bank shares he/she can only buy 2% stake this time. Maximum bidding volume is 8%, however, non-financial companies are permitted to acquire up to 10% with FSC approval.

The bidding will proceed in competitive auction scheme. Submission of letters of intend (LOI) are due September, and final winning bidders will be decided in November. A winning bidder who newly acquired more than 4% through this time’s auction will be given right to recomment one outside director for Woori Bank.