이 기사는 2020년 06월 25일 08:00 thebell 에 표출된 기사입니다.

Foreign potential buyers for South Korean financial services firm Hyosung Capital have been given two more weeks to prepare their preliminary offers.

Deal manager BDA Partners on Monday afternoon notified prospective bidders for Hyosung Capital that the first round of bidding would be delayed two weeks. As a result the bidding originally scheduled for June 26 will likely take place on around July 10.

The postponement was done to give enough time to foreign investors who are unable to perform on-site due diligence due to Covid-19 travel restrictions, sources said Tuesday. They are said to be in the process of hiring accounting firms in the country to help conduct due diligence.

Hyosung Group had initially considered going ahead with the original schedule and allowing foreign investors to submit belated offers. But this option was ultimately rejected, according to sources, because of internal concerns over a possible leak of information that could affect fairness among potential bidders.

“Since foreign investors account for a large portion of potential bidders for Hyosung Capital, the seller will likely fully consider their voices during the bidding process,” an industry insider said. “The change in the bidding schedule appears to hardly affect investors’ interest in the target.”

China’s Ping An International Financial Leasing and some strategic investors from Japan and Australia are among more than 10 prospective bidders for Hyosung Capital. Several private equity firms in the country also expressed interest in the company.

Foreign strategic investors, which are seeking synergies with their existing financial leasing business, are said to be more aggressive in buying the company than private equity rivals. Any foreign potential buyer who wins the bidding war would not need to obtain approval on the deal from the country’s financial regulator.

Hyosung Group needs to complete the sale of Hyosung Capital by the end of December to comply with local regulations that forbid a non-financial holding company from owning a stake in a financial services company. The conglomerate is seeking valuation of about 416.7 billion won ($345.9 million), which represents a price-to-book ratio of one, or more. The bidding process is expected to take at least four months.

(Reporting by Ik-hwan Choi)