Citigroup is reported to be close to finalizing a deal to buy a controlling stake – valued at $1bn -in South Korea’s Koram Bank from a US consortium led by the private equity fund Carlyle Group.
Carlyle has been in talks with Citigroup, HSBC Holdings, Standard Chartered and Singapore’s state investment agency, Temasek Holdings. If Citigroup is successful, it would come as a blow to Standard Chartered, which had been considered the leading contender to buy Carlyle’s 36.6 per cent share. While sources closes to the dealings insist that Standard Chartered are still in race, they confirmed that Citigroup was leading the auction.
Citigroup are maintaining a no-comment policy on the matter, but acquiring the stock would help shore up their position in one of the largest retail banking markets in Asia.
Standard Chartered are currently the second largest shareholder in Koram, after raising their stake in 2003 to 9.8 percent.
The consortium of Carlyle and the private equity arm of JP Morgan are Koram’s top shareholders. They began inviting bids late last year after their mandatory holding period expired last year.