MBK and KB bid for S.Korea Woori bad loan unit; deal could hit $283 mln-sources (updated)

DAISHIN SECURITIES CO

02/12/2013 08:44

SEOUL, Dec 2 (Reuters) - A consortium joined by private equity firm MBK Partners was among at least three suitors to place final bids for the bad-loan unit of Woori Finance Holdings Co Ltd  053000.KS , sources familiar with the matter said, in a deal expected to be worth about 300 billion won ($283.47 million) or less. The sale of Woori F&I Co Ltd, South Korea's second-largest non-performing loan (NPL) manager, is part of Seoul's effort to trim its stake in Woori Finance and recoup more than $11 billion in bailouts dating back to the 1990s.  ID:nL3N0F20KE  Foreign interest in the bad-debt manager cooled in the final round due to a lack of information and perceived over-valuation of its distressed debt, the sources added. "We were able to get perhaps 30 percent of the information we needed in due diligence," said a buy-side source who participated in the process. Initial discussions of a stake sale in United Asset Management Corporation (UAMCO), the No.1 player in South Korean bad debt, also diverted some bidder interest, said the sources, who were not authorized to speak to media. MBK entered a bid as part of a consortium with BS Financial Group Inc  138930.KS  of South Korea to acquire Woori F&I, two sources with knowledge of the matter said. Other bidders include local financial firms KB Financial Group  105560.KS  and Daishin Securities  003540.KS , the companies said in regulatory filings. KB and Daishin were also among bidders for a 52 percent stake in lease and loan unit Woori Financial Co Ltd  021960.KS , expected to be similar in deal size to Woori F&I. Binding bids for brokerage unit Woori Investment & Securities  005940.KS  and Woori's regional banking unites are expected to be due later this month. Woori Finance and MBK declined comment. Citigroup  C.N  is advising Woori Finance on the sale. ($1 = 1058.3000 Korean won) (Reporting by Joyce Lee; Editing by Matt Driskill) ((jungyoon.lee@thomsonreuters.com)(+82 2 3704 5609)(Reuters Messaging: jungyoon.lee.thomsonreuters.com@reuters.net)) Keywords: WOORI SALE/