On August 1, 2019, J.C. Flowers & Co. LLC (“JCF”), the US-based PEF focusing on investments in the financial industry, completed its sale of Acuon Capital Corporation (“Acuon Capital”) and its subsidiary, Acuon Savings Bank (“Acuon Savings”), to Baring Private Equity Asia (“BPEA”), the Hong Kong-based PEF.

JCF acquired KT Capital in August 2015, Doosan Capital in October 2015, and HK Savings Bank in July 2016.  KT Capital and HK Savings Bank changed their company names to Acuon Capital Corporation and Acuon Savings Bank, respectively.  In January 2017, Doosan Capital was merged with Acuon Capital, completing the restructuring of Acuon Capital to wholly own Acuon Savings as a subsidiary.

Acuon Capital and Acuon Savings each grew to own capital of KRW 5.3 trillion and KRW 2.1 trillion, respectively, by the end of 2018, establishing themselves as among the top ten lenders and savings banks of Korea.

On August 1, 2019, JCF sold approximately 97% of Acuon Capital shares and 100% of the shares held by Acuon Capital in Acuon Savings to BPEA, at an aggregate purchase price exceeding KRW 600 billion.  The sale transaction is an exemplary exit case, as JCF successfully recovered its investment after three years since acquiring Acuon Capital and Acuon Savings for a total of KRW 500 billion.  BPEA is also setting out to implement its growth strategy based on its exit experience with Halla Cement.

As an advisor for both JCF and BPEA in this transaction, Kim & Chang provided both parties with advisory services on all aspects of the transaction, including drafting, negotiating and executing definitive agreements, conducting due diligence, and engaging in all closing related matters, such as obtaining relevant licenses and approvals.