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Hana Financial sued by unit of Lone Star over purchase of KEB

All Headlines 16:38 September 02, 2016

SEOUL, Sept. 2 (Yonhap) -- Hana Financial Group Inc., South Korea's third-largest banking group by assets, said Friday that it has been sued by a unit of U.S. equity fund Lone Star over its purchase of Korea Exchange Bank.

LSF-KEB Holdings SCA, a unit of the private equity fund, brought the suit against Hana Financial Group to the International Court of Arbitration last month, seeking compensation of US$500 million, Hana Financial Group said in a regulatory filing.

KEB Hana Bank building in Seoul. (Yonhap file photo)

Hana Financial Group said it will have its lawyer "aggressively" fight the suit.

Lone Star bought a 50.5-percent stake in KEB for 1.4 trillion won (US$1.2 billion) in 2003 before selling a 51.02-percent stake of the Korean lender to Hana Financial Group for 2.02 trillion won in 2012.

Hana Financial Group said it suspects that Lone Star could have filed the suit on the ground that it failed to sell KEB at a higher-than-expected price due to delay of the South Korean government approval of the deal.

Neither LSF-KEB Holdings SCA nor Lone Star were immediately available for comment.


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