South Korea's Hana Financial Group <086790.KS> said on Tuesday its $4.3 billion deal to take over private equity fund Lone Star's controlling stake in Korea Exchange Bank <004940.KS> would be extended for six months to December.
The deal will be extended by six months to end-December, Kim Jung-tai, chief executive of Hana's banking unit Hana Bank, was quoted as telling local media. A Hana spokesman confirmed the remarks.
Hana has been in talks with Lone Star
KEB approved a record 1,510 won a share quarterly dividend on Friday, giving Lone Star a hefty $499 million despite regulators' request to refrain from high payouts. Hana said it was seeking to cut the acquisition price to reflect the record dividend payout.
In a bid to revive the deal, Hana Bank agreed to extend a 1.5 trillion won ($1.4 billion) loan to Lone Star on the back of the fund's stock holdings in KEB.
(Reporting by Ju-min Park and Miyoung Kim; Editing by Jonathan Hopfner)