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Hana Financial considers $1.7 billion offering for M&A bid
South Korea's fourth-largest Hana Financial Group Inc., which on Monday announced that it was giving a thought on a rights offer, is considered to be preparing for an M&A bid, as reported in Xinhua .
"As part of our capital plan, we are considering a rights offer in a range that won't damage the total shareholder value," Hana said in a regulatory filing. Local observers expect that the amount of rights offering may reach up to 2 trillion won ($1.7 billion), the media said.
Hana's capital adequacy ratio and tier-1 capital ratio posted 12.1 percent and 8.1 percent, respectively, as of end-June, standing far above the level recommended by the nation's financial watchdog, which suggested the offers may not be related to improvement in the bank's capital sound, according to the media.
With the money raised from the offer, Hana is likely to pursue financing an acquisition of a bank or a financial group, it said. Hana did not accept or reject the speculation.
"As part of our capital plan, we are considering a rights offer in a range that won't damage the total shareholder value," Hana said in a regulatory filing. Local observers expect that the amount of rights offering may reach up to 2 trillion won ($1.7 billion), the media said.
Hana's capital adequacy ratio and tier-1 capital ratio posted 12.1 percent and 8.1 percent, respectively, as of end-June, standing far above the level recommended by the nation's financial watchdog, which suggested the offers may not be related to improvement in the bank's capital sound, according to the media.
With the money raised from the offer, Hana is likely to pursue financing an acquisition of a bank or a financial group, it said. Hana did not accept or reject the speculation.
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