Business Context and Reporting Period
This Form 6-K was filed by Woori Finance Holdings Co., Ltd. (WFH) on December 12, 2008, reporting a material investment decision regarding its subsidiary, Woori Bank. The filing details a planned capital increase to strengthen the bank's financial position during the global financial crisis.
Key Financial Metrics
Investment Details:
- Investment Amount: 700 billion Won (700,000,000,000 Won).
- Instrument: 70,000,000 shares of convertible preferred stock.
- WFH Shareholders' Equity: 13,152,076,878,929 Won.
- Investment Ratio: The investment represents 5.32% of WFH's shareholders' equity.
Woori Bank Historical Financials (in millions of Won):
| Year | Total Assets | Total Liabilities | Shareholders' Equity | Operating Revenue | Net Profit |
|---|---|---|---|---|---|
| FY2007 | 195,281,325 | 182,976,995 | 12,304,330 | 20,788,603 | 1,777,423 |
| FY2006 | 166,405,304 | 155,108,700 | 11,296,604 | 14,876,313 | 1,642,734 |
| FY2005 | 127,193,197 | 117,506,058 | 9,687,139 | 11,422,020 | 1,425,755 |
Note: The filing does not provide specific cash flow, margin, or debt-to-equity ratios for the current period.
Material Changes and Transaction Details
WFH decided to participate in a capital increase of Woori Bank by subscribing to new shares. This transaction is designed to improve Woori Bank's capital adequacy ratio. Following the acquisition, WFH will maintain 100% ownership of Woori Bank's common shares (635,956,580 shares). The scheduled date for the issuance of new shares is December 26, 2008.
Outlook, Risks, and Management Commentary
Purpose: The primary objective of this investment is to enhance the capital adequacy ratio of Woori Bank.
Risks and Contingencies: The filing explicitly states that the timing and specific details of the transaction are subject to change. The scheduled acquisition date refers to the issuance of new shares, which may be delayed.
Key Facts for Investor Verification
- Verify the final execution of the 700 billion Won capital injection on or after December 26, 2008.
- Confirm the impact of this capital increase on Woori Bank's updated capital adequacy ratio.
- Monitor for any changes in the transaction terms or timing as noted in the filing's contingency clause.
- Review subsequent filings for the conversion terms of the 70 million convertible preferred shares.