Business Context and Reporting Period
This Form 6-K filing by Woori Finance Holdings Co., Ltd. (Woori) covers the month of August 2007. On August 31, 2007, the Board of Directors approved the acquisition of a majority interest in Hanmi Capital Co., Ltd. (Hanmi Capital), a company engaged in leasing, financing, and lending. The transaction is intended to expand Woori's non-banking business into the consumer financing sector.
Key Financial Metrics
Transaction Details:
- Investment Amount: 271,148,564,500 Won
- Shares Acquired: 8,499,955 (51.5% ownership)
- Woori Shareholders' Equity: 11,933,072,743,449 Won
- Investment to Equity Ratio: 2.3%
- Payment Method: Cash
- Scheduled Closing Date: September 14, 2007
Hanmi Capital Financial Summary (in millions of Won):
| Period | Total Assets | Total Liabilities | Shareholder's Equity | Sales | Net Profit |
|---|---|---|---|---|---|
| FY2006 | 797,379 | 635,292 | 162,087 | 98,759 | 7,497 |
| FY2005 | 256,692 | 102,160 | 154,532 | 92,135 | 25,753 |
| FY2004 | 216,762 | 87,983 | 128,779 | 80,789 | 22,005 |
Note: Hanmi Capital's shareholder equity in the transaction table is based on December 31, 2006 data. The filing does not provide specific revenue, cash flow, or margin data for Woori Finance Holdings itself.
Material Changes
The primary material change is the strategic entry into the consumer financing industry through the acquisition of Hanmi Capital. This represents a significant shift in Woori's business portfolio to enhance non-banking operations. The filing clarifies a prior disclosure made on August 24, 2007, in response to a Korea Exchange inquiry.
Outlook, Risks, and Management Commentary
Purpose of Investment: To enter the consumer financing industry and enhance Woori's non-banking business.
Management Action: The Board of Directors approved the deal with 5 members attending and 1 absent.
Contingencies: Woori stated it will make additional disclosures if required during the acquisition process. The filing does not explicitly detail specific risks associated with the acquisition beyond standard regulatory requirements.
Key Facts for Investor Verification
- Verify the final closing of the transaction on or after September 14, 2007.
- Confirm the integration of Hanmi Capital's operations into Woori's non-banking division.
- Monitor future filings for any additional disclosures required during the acquisition process.
- Review the impact of the 271 billion Won cash outlay on Woori's overall liquidity and capital structure.