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Shinhan confirmed as preferred bidder for LG Card

The process to find a buyer for a majority stake in South Korea's second largest card issuer, LG Card, is set to be concluded on August 16 with the official unveiling of Shinhan Financial Group as the preferred buyer of an 85% stake.

Reuters reports that Shinhan has reportedly bid circa KRW68,000 per share for an 85% stake in LG Card, which is currently owned by its creditors following its near-collapse in the Korean credit bubble of the early part of the century.

However the scale of the bid from Shinhan has shocked analysts, as it would equate to a total payment of nearly $7.5 billion, thereby eclipsing Kookmin’s purchase of Korean Exchange Bank as one of the largest M&A deals in recent Korean history, Reuters’ report adds.

French bank BNP Paribas has a 9.5% stake in Shinhan.