Newbridge in $3.3 Billion Sale of Korea First Bank, Largest-ever Foreign Investment in Korea
April 15, 2005
Cleary Gottlieb represented KFB Newbridge Holdings in the sale of the entire share capital of Korea First Bank to Standard Chartered Bank. Valued at $3.3 billion, the transaction is the largest foreign investment in Korea to date.
Prior to the transaction, Newbridge held 48.56% of Korea First Bank’s capital and exercised its rights under a shareholders’ agreement to require the other shareholders, Korea Deposit Insurance Corporation and the Ministry of Finance and Economy of the Republic of Korea, to sell their shares on the same terms as Newbridge. Korea First Bank and Standard Chartered also entered into a transition agreement governing the conduct of Korea First Bank’s business prior to completion of the sale.
Cleary represented Newbridge in its 2000 acquisition of a controlling interest in Korea First Bank, and since then has represented the bank in numerous international securities offerings, including a €550 million offering of mortgage-backed securities in December 2004.
Korea First Bank is the seventh-largest commercial bank in Korea.