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Hana says $4.3 billion KEB deal extended to December

The logo of Hana Bank is seen at the bank's main office building in Seoul
The logo of Hana Bank is seen at the bank's main office building in Seoul

SEOUL (Reuters) - South Korea's Hana Financial Group <086790.KS> said on Tuesday its $4.3 billion deal to take over private equity fund Lone Star's controlling stake in Korea Exchange Bank <004940.KS> would be extended for six months to December.

"The deal will be extended by six months to end-December," Kim Jung-tai, chief executive of Hana's banking unit Hana Bank, was quoted as telling local media. A Hana spokesman confirmed the remarks.

Hana has been in talks with Lone Star to extend the deal deadline after their agreement expired in May as regulators put approval for the deal on hold, citing legal disputes affecting Lone Star.

KEB approved a record 1,510 won a share quarterly dividend on Friday, giving Lone Star a hefty $499 million despite regulators' request to refrain from high payouts. Hana said it was seeking to cut the acquisition price to reflect the record dividend payout.

In a bid to revive the deal, Hana Bank agreed to extend a 1.5 trillion won ($1.4 billion) loan to Lone Star on the back of the fund's stock holdings in KEB.

(Reporting by Ju-min Park and Miyoung Kim; Editing by Jonathan Hopfner)

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