Visor Capital acts as an exclusive financial adviser in largest ever cross-border M&A transaction by Korean financial institution.

Kookmin Bank, Korea's leading financial institution acquired a controlling stake in Bank Center Credit. Kookmin Bank’s initial investment for the 30% stake amounted to approximately USD 634 million (equivalent to KRW 621.3 billion), made through a combination of a purchase of shares from existing shareholders and a subscription for new shares issued by BCC to support the bank’s further growth.

Upon the completion of the initial investment pursuant to agreements signed between Kookmin Bank and certain shareholders of BCC, including the largest shareholder, Mr. Bakhytbek R. Bayseitov, Kookmin Bank will become the second largest shareholder in BCC. The selling shareholders have also agreed to deposit USD 240 million of the sale proceeds with BCC to foster the bank’s liquidity. The agreed issuance of new shares as part of the initial investment is expected to further increase BCC’s capital by approximately USD 160 million.

In addition, subsequent to the initial investment, KOOKMIN BANK will obtain a controlling position of 50.1% or more of BCC’s outstanding shares through the purchase of additional shares, further capital injections/ rights offerings, or any combination of such options.

Visor Capital acted as exclusive financial adviser to KOOKMIN BANK, with Cleary Gottlieb Steen & Hamilton LLP, Shin & Kim and Grata acting as legal advisers.

The deal is the largest ever cross-border M&A transaction by a Korean financial institution and a major step for Kookmin towards securing an opportunity for overseas growth.

KOOKMIN BANK and BCC presented the transaction in more detail at a press conference held in Almaty, Kazakhstan, on Tuesday, 18 March 2008, in ‘Zhailau Golf Club’.