ANZ completes due diligence on South Korea KEB

SEOUL - Australia and New Zealand Banking Group has completed due diligence to decide whether to bid for a majority stake in Korea Exchange Bank, South Korean media reported on Sunday.

ANZ finished the three-week inspection for the deal, worth about US$4 billion at current prices, on Friday and will make a decision by October at the earliest, online news provider EDaily quoted financial industry sources as saying.

US private equity firm Lone Star, which owns 51 percent of KEB, asked ANZ to conduct the due diligence on the South Korean bank, EDaily said.

"After the inspection, ANZ may offer a higher price than its previous offer of some 3 trillion won," EDaily quoted an unnamed official close to the sale as saying.

The official added Lone Star had given up selling the stake at about $6 billion long time ago, according to EDaily.

Officials from ANZ, KEB and Lone Star were not available for comments on the report.

Last month, three sources said ANZ was expected to decide by mid-October whether to bid for a majority stake in KEB.

If successful, the KEB deal will represent ANZ's biggest ever acquisition as Australia's No. 4 bank steps up its effort to become an Asia-focused regional bank, along the lines of HSBC Holdings and Standard Chartered.

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ONGC to finalize BP Vietnam asset valuation in few weeks

Photo: AFP

MUMBAI - Indian state-run explorer Oil and Natural Gas Corp will make a joint bid with PetroVietnam for BP's Vietnam assets after completing its evaluation of them in the next few weeks, Oil Secretary S. Sundareshan told reporters on Saturday.

"They are making an evaluation of the value of BP's assets, and once that is finalized they will make an offer in conjunction with PetroVietnam," Sundareshan said.

ONGC has a 45 percent share in Block 6.1 in the Nam Con Son basin, off Vietnam's southeast coast, operated by BP, which has a 35 percent stake. The remaining 20 percent is owned by state-run PetroVietnam.

Sundareshan said the valuation process is likely to be completed in a few weeks.

The stake would be a welcome acquisition for India, which has been lagging China in the hunt for natural resources as both countries seek to feed their fast economic growth.

UBS analysts have said BP's stake, which includes an interest in the Lan Tay and Lan Do gas fields, the Nam Con Son pipeline and the Phu My power generation project, is worth $966 million.

No decision on Cairn-Vedanta deal

Sundareshan also said the government had yet to decide on whether to allow Vedanta Resources to buy a majority stake in the Indian unit of Cairn Energy.

Last month, India-focused miner Vedanta said it had agreed to spend up to $9.6 billion to buy a majority stake in Cairn India from UK-based Cairn Energy.

The deal needs Indian government approval because Cairn India has production-sharing contracts with the government for oil and gas exploration blocks. According to the agreement, any ownership change will need federal approval.

"We have written to them saying they should seek these approvals and so far there has been no response. As soon as the requests come...they will be examined on merit and a decision will be taken," Sundareshan said on Saturday.

He also said India was planning a policy by which gas in the country would be uniformly priced.

"Maybe in the course of the next year we would move to a situation where there could be a pool pricing of gas irrespective of the source, international or domestic, and gas could be uniformly priced."

A policy to provide fuel at a similar price across the country could firm up in the next 8-9 months, he added.

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HSBC in talks to buy majority stake in Nedbank

Asia-focused banking giant HSBC announced on Monday that it is in "exclusive" talks with insurer Old Mutual over the potential purchase of a controlling stake in South Africa's Nedbank

LONDON – Asia-focused banking giant HSBC announced on Monday that it is in "exclusive" talks with insurer Old Mutual over the potential purchase of a controlling stake in South Africa's Nedbank.

"HSBC Holdings plc has entered into exclusive discussions with Old Mutual plc about the possible acquisition of a majority stake in Nedbank Group Limited, South Africa's fourth largest banking group by total assets," HSBC said in a brief statement to the London Stock Exchange.

"The discussions are ongoing and if successfully concluded would be conditional on, among other matters, obtaining the necessary regulatory approvals."

In a separate statement, Old Mutual revealed that it has received a proposal from HSBC to buy up to 70 percent of Nedbank shares, but did not reveal the price.

Old Mutual added that the proposed deal would be a "major step" in its strategy to reduce the group's complexity, adding that the proceeds would be reinvested and used to cut debt.

Meanwhile, the Financial Times newspaper reported on Monday that HSBC had fended off competition for Nedbank from British-based emerging markets lender Standard Chartered.

The daily business newspaper, which cited people familiar with the talks, added that HSBC's proposed Nedbank deal could lead to a full takeover offer.

HSBC, which is seeking expansion in emerging markets, agreed last month to buy the Indian commercial and retail banking assets of Britain's state-controlled Royal Bank of Scotland.

 

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