South Korean fixed and mobile operator KT is to buy a 20% stake in BC Card, the country’s largest credit card company, from Woori Bank, reported the Wall Street Journal citing a company spokesman.
Under the agreement reached between the two companies,…
South Korean fixed and mobile operator KT is to buy a 20% stake in BC Card, the country’s largest credit card company, from Woori Bank, reported the Wall Street Journal citing a company spokesman.
Under the agreement reached between the two companies, Woori Bank has the option to buy back part of the 20% stake if KT decides to enter the credit card business on its own in the future, the spokesman was quoted saying.
But the newspaper explained that it could not get confirmation that KT has agreed to pay more than W140,000 (US$126) per share for the 20% interest.
TelecomFinance was unable to confirm the amount by press time.
Since October, KT has been rumoured to be pressing ahead with the stake acquisition in order to increase its exposure to convergence between the telecoms and banking sectors. However, according to recent reports, valuation issues delayed the deal.
In the meantime, KT is reportedly still interested in buying another stake in BC Card, but from private equity firm Vogo Fund, Shinhan Card and Busan Bank. KT, which already owns a 1.98% stake in BC, would control 51.54% if this transaction is completed.
