Shinhan Financial plans to spend 1.2 trillion won to acquire Lotte's non-life insurance business

The Korea Economic Daily, citing anonymous investment banking sources, reported that Shinhan Financial Group plans to invest a total of 1.2 trillion won to acquire Lotte Non-Life Insurance and recapitalize it. Shinhan has agreed to acquire a 77.04% stake held by JKL Partners for 69.33 billion won, and plans to secure the remaining stake in Lotte Insurance next year through a tender offer and other means. After making Lotte Insurance a wholly owned subsidiary, Shinhan plans to merge Lotte Insurance with Shinhan EZ Property & Casualty Insurance and inject 300 billion won in new capital into the merged insurer through a rights offering. After the acquisition is completed, Lotte Insurance plans to carry out a capital reduction of approximately 460 billion won to meet the core capital requirements of South Korea's insurance capital regulatory standard K-ICS, which will take effect next year.