Sale of LG credit card to gain momentum

Creditors to put sale through public tender offer

The sale of LG Card Co., South Korea’s largest issuer of credit cards, is set to gain speed as its creditors are reportedly poised to put their controlling stake on the selling block through a tender offer, financial sources said.

According to sources close to the matter, the main creditors of LG Card, including Korea Development Bank (KDB), Industrial Bank of Korea, and Woori Bank, are planning to push for the use of a tender offer, or an open, public sale process with strict regulations. Through a public tender, purchasers are required to publicize their bidding prices and the number of stocks they would buy in advance of acquisition in order to protect minority shareholders.

Five companies have so far been allowed to conduct a due diligence on the purchase of LG Card Co., which amounts to research done on the investment before making a bid. Those companies include Shinhan Financial Group Ltd. and Hana Financial Group Inc.

KDB said that the sale is expected to be finalized in February, following the due diligence process and approval by the nation’s financial authorities.