Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

SKorea starts review of HSBC bid for bank

SEOUL, August 25 – South Korea\’s financial watchdog said Monday it has started a long-delayed review of HSBC\’s bid to buy Korea Exchange Bank (KEB), after the global giant submitted updated documents on the deal.

Financial Services Commission chief Jun Kwang-Woo said the regulatory review began on August 18 but declined to say whether the watchdog would approve the six-billion-dollar deal to buy a 51 percent stake in KEB from Lone Star.

"It is difficult to predict its outcome and direction," he told reporters.

HSBC agreed last September to buy Lone Star\’s stake in KEB, the country\’s fifth largest lender.

But the watchdog withheld approval, citing legal disputes over the US buyout fund\’s 2003 purchase of the Korean bank.

The commission resumed its review after HSBC submitted updated documents on the deal.

Prosecutors investigated allegations that former government officials and a former president of KEB colluded to "artificially" understate the bank\’s financial health to help Lone Star purchase it at a below-market price.

A verdict in the case, in which Lone Star is not charged, is expected by the end of September at the earliest.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...