Business Context and Reporting Period
This Form 6-K filing by Woori Finance Holdings Co., Ltd. (WFH) covers the month of March 2009, with a decision date of March 27, 2009. The report details a strategic investment decision by WFH to acquire new shares of its subsidiary, Woori Bank, to strengthen the bank's capital adequacy ratio.
Key Financial Metrics
Investment Details
- Investment Amount: 300,000,000,000 Won
- Shares Acquired: 60,000,000 common shares
- Investment vs. Equity: The investment represents 2.5% of WFH's shareholders' equity (12,207,338,296,459 Won).
- Post-Acquisition Ownership: WFH will own 765,956,580 shares, representing 100% of Woori Bank.
Woori Bank Financial Summary (Non-Consolidated)
| Item (Won in millions) | FY2008 | FY2007 | FY2006 |
|---|---|---|---|
| Total Assets | 228,048,189 | 195,315,035 | 166,405,304 |
| Total Liabilities | 216,126,911 | 183,098,683 | 155,108,700 |
| Shareholders' Equity | 11,921,278 | 12,216,352 | 11,296,604 |
| Capital | 3,529,783 | 3,179,783 | 3,179,783 |
| Revenue | 74,901,318 | 20,788,603 | 14,876,313 |
| Net Income | 233,976 | 1,689,448 | 1,642,734 |
Note: The filing does not provide specific cash flow, margin, or debt ratio metrics beyond the balance sheet totals.
Material Changes
- Revenue Surge: Woori Bank's revenue increased significantly from 20.8 trillion Won in FY2007 to 74.9 trillion Won in FY2008.
- Profit Decline: Despite revenue growth, Net Income dropped sharply from 1.69 trillion Won in FY2007 to 234 billion Won in FY2008.
- Equity Fluctuation: Shareholders' equity decreased slightly from 12.2 trillion Won in FY2007 to 11.9 trillion Won in FY2008.
- Capital Increase: The proposed transaction will increase Woori Bank's capital base by 300 billion Won.
Outlook, Risks, and Management Commentary
Purpose of Investment: The primary objective is to strengthen Woori Bank's capital adequacy ratio.
Scheduled Date: The acquisition is scheduled for March 31, 2009.
Risks and Contingencies: The filing explicitly states that the timing and specific details of the transaction are subject to change.
Key Facts for Investor Verification
- Confirm the final execution of the 300 billion Won capital injection by March 31, 2009.
- Verify the impact of the FY2008 revenue spike on the subsequent drop in net income.
- Monitor the updated capital adequacy ratio of Woori Bank post-investment.
- Check for any regulatory approvals required for the capital increase.