South Korean private equity firm JKL Partners has reportedly approached the American private equity firm JC Flowers & Co. regarding the sale of Lotte Insurance. The sale’s lead manager, JP Morgan, has also engaged large global private equity firms, including BlackRock and Blackstone, aiming to enhance their negotiating power by securing multiple overseas buyers.
According to investment banking industry sources on April 18, JP Morgan, the lead manager for the sale of Lotte Insurance, has been actively engaging with overseas private equity firms. It is suggested that JKL Partners appointed a foreign investment bank as the sales manager to keep options open for selling to foreign buyers.
JP Morgan has successfully managed several global insurance transactions last year, including the sale of AmMetLife, a joint venture between Malaysia’s AmBank and MetLife, and the transfer of a stake in Singlife from the U.K.’s Aviva Group to Japan’s Sumitomo Life.
Established in 1998, JC Flowers is a U.S.-based private equity firm specializing in financial services, with assets under management (AUM) totaling about 5.5 trillion won. In South Korea, it has participated in the acquisition bid for ABL Life. In 2015, the firm acquired KT Capital and Doosan Capital, followed by the purchase of HK Savings Bank the next year. JC Flowers then merged KT Capital and Doosan Capital into Acuon Capital, transformed HK Savings Bank into Acuon Savings Bank, and sold both entities to Baring Private Equity Asia (PEA).
“Potential investors, including overseas private equity firms, have been contacted by the seller, who recently met with JC Flowers,” said an industry insider. “However, it is uncertain whether overseas PEs are interested in a South Korean insurance company.”
Since appointing a sales agent last October, Lotte Insurance has been actively seeking buyers. While domestic financial holdings are considered as potential acquirers, attracting interest from overseas buyers could significantly enhance the valuation of Lotte Insurance by ensuring access to multiple channels. The market values Lotte Insurance between 1.5 trillion won and 2 trillion won.
