Business Context and Reporting Period
This Form 6-K filing by Woori Finance Holdings Co., Ltd. (Woori) covers the month of January 2008. The report details a strategic investment decision approved by the Board of Directors on January 30, 2008, to acquire a majority interest in LIG Life Insurance Co., Ltd. (LIG Life).
Key Financial Metrics and Transaction Details
The transaction involves a cash acquisition of 3,060,000 shares of LIG Life, representing a 51.00% ownership stake. The total investment amount is 76,335,320,873 Won. This investment represents approximately 0.64% of Woori's shareholders' equity, which was reported at 11,933,072,743,449 Won as of December 31, 2006.
Financial summary for LIG Life (in millions of Won):
| Period | Total Assets | Total Liabilities | Shareholders' Equity | Operational Revenue | Net Profit |
|---|---|---|---|---|---|
| 1H 2007 | 1,352,472 | 1,299,284 | 53,188 | 225,334 | 5,312 |
| FY 2006 | 1,300,015 | 1,250,369 | 49,646 | 506,311 | 13,469 |
| FY 2005 | 1,226,058 | 1,189,727 | 36,332 | 510,428 | 19,086 |
Material Changes and Strategic Purpose
The primary material change is the planned entry into the life insurance industry to enhance Woori's non-banking business portfolio. The acquisition targets LIG Life, which operates in life insurance, casualty insurance, illness insurance, and pension plans. The scheduled date for the acquisition is April 1, 2008.
Outlook, Risks, and Contingencies
The completion of the acquisition is contingent upon approval from the Financial Supervisory Service for the inclusion of LIG Life as a subsidiary and the change in the controlling shareholder of LIG Life. The filing notes that the scheduled acquisition date may be subject to change based on these regulatory approvals. Woori has committed to making additional disclosures if required during the acquisition process.
Key Facts for Investor Verification
- Confirmation of the Financial Supervisory Service's approval for the acquisition.
- Final closing date, which is currently scheduled for April 1, 2008 but subject to change.
- Updated financial performance of LIG Life beyond the 1H 2007 data provided.
- Any additional regulatory conditions or disclosures required during the integration process.