U.S.-based investment fund Lone Star may return part of its profit from the planned sale of its stake in Korea Exchange Bank, the country's financial watchdog said Monday.
The Dallas-based fund is pushing to sell a combined 64.62 percent stake in KEB to the nation's top lender, Kookmin Bank, for 6.3 trillion won (US$6.55 billion). The sale would include a 50.53 percent stake held by Lone Star.
Lone Star exercised its right in May to buy a combined stake of 14.1 percent from the Export-Import Bank of Korea and Germany-based Commerz Bank.
However, under South Korea's stock trading regulations, Lone Star would be required to return its estimated capital gain of 610 billion won from the sale of the stake to Kookmin Bank should the deal go through before November 30.
"However, there are some exceptions to these regulations...we are reviewing whether Lone Star's case falls into that category," said Kim Yong-hwan, a director of the Financial Supervisory Commission's supervisory policy division.
South Korean prosecutors and auditors have been investigating allegations that KEB was fraudulently undervalued and subsequently sold to Lone Star for a below-market price at the end of 2003, as well as claims the fund was involved in tax evasion and other criminal acts.
Lone Star bought KEB for 1.38 trillion won at the end of 2003 and is expected to reap more than 4 trillion won in profit from the stake sale.
Seoul, June 19 (Yonhap News)
Lone Star may return gains from stake sale, regulator says |
