KB Kookmin Bank and GS Energy to share GS Power

A KB Kookmin Bank consortium and GS Energy signed on Thursday sales contracts with GS Caltex for each to purchase a 50 percent share of GS Power.

GS Power, a subsidiary of GS Caltex, the nation’s second-largest crude oil refiner, became the first company shared by an industrial and financial company. GS Energy took over management control.

Many investors showed interest in the stake sale of GS Power announced in October last year. The KB Kookmin Bank consortium was selected as a preferred bidder on March 21 and brought in six financial institutions as fund investors for the deal.

“This sales contract will be a significant milestone for KB Kookmin Bank to establish long-term partnerships by buying shares of local companies jointly with other fund investors in a form of indirect investment. We will become a partner that provides financial consultation on future businesses and support overseas expansions,” said an official at KB Kookmin Bank through a statement.

KB Financial Group chairman Euh Yoon-dae, KB Kookmin Bank CEO Min Byong-deok, GS Caltex chairman Hur Dong-soo, GS Energy Vice Chairman Rha Wan-bae and officials from financial companies including Kyobo Life Insurance, Korea Life Insurance, KB Investment & Securities and KB Asset Management attended the signing ceremony held on Thursday at COEX InterContinental Hotel in southern Seoul.

By Park Min-young (claire@heraldcorp.com)