South Korea-based KB Financial Group's board has reportedly given approval to buy 19.47% stake in general insurer LIG Insurance for KRW645bn ($583m).
KB Financial first entered into the deal in June 2014 to take over the non-life insurer and received approval from Financial Services Commission in December the same year.
The Seoul-based LIG is claimed to be the fourth largest insurer in the country. The acquisition is said to be part of KB’s efforts to strengthen its non-banking business.
One of the KB Financial officials was quoted by Yonhap News Agency as saying: "The heads of KB Financial and LIG Group had talks about the price in a meeting last month. Since the meeting, negotiations have gained speed."
Following negotiations, the takeover price has been reduced from KRW685bn ($619.4m) to KRW645bn ($583m).
KB Financial is also planning to purchase an additional 10% stake in LIG Insurance this year, which if finalised could make the insurer into its 12th affiliate, according to The Korea Times.
With a presence in China and Indonesia, LIG Insurance offers credit and insurance products and services, including health, injury, property, automobile insurance products and loans such as mortgage loans, credit loans and loans insurance.
In addition, the firm provides fire, marine, life insurance, personal pension, ceded insurance products such as retirement, pensions and savings.
Image: KB Financial Group to buy stake in general insurer LIG Insurance. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.