Final bids for Acuon Capital delayed as buyers seek more due diligence time

The final bid deadline for the sale of Acuon Capital and Acuon Savings Bank has been pushed back to early June.

According to investment banking industry sources, the deadline was moved from May 29 to June 5 — a delay of roughly one week. Prospective buyers had been given about two months of due diligence following a preliminary bid round in late March, but requested additional time, prompting the schedule adjustment. A preferred bidder is now expected to be named as early as next week.

The assets on the block are EQT Partners' 96.6 percent stake in Acuon Capital. Acuon Savings Bank is a wholly owned subsidiary of Acuon Capital, and the deal has been structured as a package sale of both entities.

Following the preliminary bids, Hanwha Life, Meritz Financial Group and Baikal Investment made the shortlist of qualified acquisition candidates. Hanwha Life and Meritz Financial Group are understood to be focused on Acuon Capital as a way to strengthen their capital financing portfolios, while Baikal Investment is primarily interested in acquiring Acuon Savings Bank.

The market has pegged the combined sale price at around 1 trillion won ($665 million). The two companies' combined equity stood at 1.209 trillion won ($804 million) as of the end of last year, and applying a price-to-book ratio of 0.8 times yields a valuation of roughly 1 trillion won ($665 million). The actual price, however, could vary depending on the deal structure.

Industry observers point to the deal structure itself as the main reason for the extended due diligence period. Prospective buyers are split in their interest — some targeting the capital unit, others the savings bank — and the possibility of a separate sale rather than a package deal has consistently been raised. Valuation calculations differ significantly depending on which route is taken, making thorough due diligence across multiple scenarios unavoidable for bidders. Regulatory approvals and financing arrangements would also differ under each structure.

Acuon Capital was founded in 2006 as KT Corp's captive finance arm, KT Capital. In 2015, U.S. private equity fund JC Flowers acquired a stake in KT Capital for about 300 billion won ($200 million) and rebranded it as Acuon Capital. JC Flowers subsequently acquired HK Savings Bank and renamed it Acuon Savings Bank, then merged Doosan Capital into Acuon Capital to expand the business.

JC Flowers sold Acuon Capital to what was then Baring Private Equity Asia for about 700 billion won ($466 million) in 2019. When Baring PEA merged with Swedish global private equity fund EQT Partners in 2022, the current ownership structure took shape.