Heungkuk Fire & Marine Insurance has decided to participate in the final round of bidding for Yebyul Insurance, with Korea Investment Holdings also expected to submit a bid, boosting prospects for the completion of the insurer's sale.
According to local media reports, Heungkuk Fire plans to submit its final acquisition proposal before the bidding closes on 30 July. Korea Investment Holdings is also reportedly likely to participate, while Kyobo Life Insurance, which had previously conducted due diligence, has decided not to proceed with a final bid. IBK Industrial Bank of Korea, which had earlier been mentioned as a potential bidder, is not expected to take part in either the due diligence process or the final bidding.
Yebyul Insurance was established by the Korea Deposit Insurance Corporation (KDIC) as a bridge insurer to facilitate the resolution of MG Non-Life Insurance.
An earlier attempt to sell the company failed in April after Korea Investment Holdings emerged as the sole bidder, preventing the competitive bidding required for the transaction to proceed.
Ahead of the renewed sale process, KDIC increased the level of financial support available to a prospective buyer from KRW800bn ($580m) to as much as KRW1.2tn. If multiple bidders submit valid offers in the current round, the corporation plans to appoint a preferred bidder next month.
Korea Investment Holdings and Heungkuk Fire & Marine are currently regarded as the most active acquisition candidates.