Meritz Financial Group and Hanwha Life Insurance have joined the final bidding for the sale of Acuon Capital and Acuon Savings Bank, whose price tag is estimated at around 1 trillion won. Acuon Capital holds Acuon Savings Bank, one of the largest savings banks by assets, as a subsidiary, allowing Meritz Financial and Hanwha Life to diversify their financial services portfolios. Private equity firm Baikal Investment also joined the final bidding, intensifying the acquisition contest.
According to the investment banking (IB) industry Friday, Meritz Financial, Hanwha Life, and Baikal Investment participated in the final bidding for the sale of Acuon Capital and Acuon Savings Bank held that day. The asset for sale is a 96.06% stake in Acuon Capital held by global private equity (PEF) firm EQT Partners, and Acuon Capital holds a 100% stake in Acuon Savings Bank. The bidders reportedly offered about 1 trillion won as the acquisition price. As of the end of last year, Acuon Capital's equity stood at 1.209 trillion won on a consolidated financial statement basis.
The participation of Meritz Financial and Hanwha Life in the Acuon Capital acquisition contest is interpreted as a move to acquire a savings bank and diversify their business portfolios. Meritz Financial has securities, insurance, and capital affiliates but does not own a savings bank. By acquiring a savings bank, which faces lower regulatory barriers than banks, the group can secure a stable funding source and advance its IB business, where it holds strengths. If Acuon Capital, with assets in the 9 trillion won range, is combined with Meritz Capital, which has 11 trillion won in assets, the capital business can also be scaled up further.
Hanwha Life's core businesses are life insurance, non-life insurance, securities, asset management, and savings banking. If it succeeds in acquiring Acuon Capital, it can develop a capital business, and the asset size of its savings bank operations would also expand at once. Baikal Investment is a PEF firm founded by Lim Tae-ho, formerly of E&F Private Equity.
EQT selected Citigroup Global Markets Securities and UBS as lead managers late last year to begin the sale process in earnest. After preliminary bidding in March, it finalized the shortlist of qualified candidates including Meritz Financial, Hanwha Life, and Baikal Investment.
