Lotte Insurance recorded its upper limit rise amid news of acquisition interest from Shinhan Financial Group and Korea Investment Holdings.
According to the Korea Exchange, as of 10:28 a.m. on June 29, Lotte Insurance shares were trading at 2,245 won, up 516 won (29.84%) from the previous trading day.
The surge in Lotte Insurance's stock price is attributed to growing expectations surrounding a potential merger and acquisition (M&A).
Sources in the financial sector indicate that Shinhan Financial Group is currently considering acquiring Lotte Insurance. Korea Investment Holdings has also reportedly submitted a letter of intent (LOI) and has begun its review process.
Particularly, reports of ongoing negotiations between Shinhan Financial and JKL Partners, the private equity firm that is Lotte Insurance's largest shareholder, have sparked investor interest. Shinhan Financial is believed to be exploring the acquisition to strengthen its competitiveness in the non-life insurance sector.
The sale process for Lotte Insurance is also gaining momentum. Industry insiders suggest that JKL Partners may push for a public sale procedure in August. Recent speculation indicates that the expected sale price has decreased from the previous 2 trillion won range to around 1 trillion won, increasing interest from potential buyers.
However, the market remains cautious, with uncertainties regarding the actual completion of the deal, the burden of capital expansion post-acquisition, and price negotiations likely to be significant factors moving forward.
* This article has been translated by AI.
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