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S.Korean investment group signs MOU to buy SK Life
SEOUL, May 3 (Reuters) - South Korea's Mirae Asset Group has signed a preliminary
agreement to buy the country's ninth-biggest life insurance firm, SK Life, a main
creditor said on Tuesday, in a deal reported to be worth $150-$200 million.
The mid-sized investment firm was selected as the preferred negotiator after U.S. life
insurer Metlife Inc. broke off talks to buy SK Life in mid-March.
Mirae had signed a memorandum of understanding (MOU) and would now conduct
due diligence to determine the acquisition price, a spokesman for Hana Bank , the
main creditor to the SK Group, said by telephone.
Creditors of the SK Group are selling SK Life and other assets of the country's
fourth-largest conglomerate in a bid to recoup money owed by financially troubled
affiliate, SK Networks , the main shareholder of SK Life.
The Korea Economic Daily reported on Tuesday Mirae had offered 150-200 billion
won ($150.5-$200.6 million) for the life insurer, but would agree to keep on all
employees.
Mirae, established in 1997, runs seven asset management units with 12 trillion won
under management.
Talks to sell SK Life to New York-based Metlife Inc for a reported $300 million broke
down because of disagreements on price and due to unresolved labour issues.
Acquiring SK Life is seen as an opportunity to get a slice of the country's life
insurance market, the world's seventh biggest, which is expected to benefit from
growing demand for investment-linked policies and pension products.
($1=997.0 Won)
Hana declined to confirm the value of the preliminary deal.