South Korean private equity fund MBK Partners Ltd. was selected to fully acquire global insurance giant ING Group's local unit here, industry sources said Monday.
According to the sources, MBK clinched the deal with the Netherlands-based ING Group to purchase a full stake in ING Life Korea for 1.8 trillion won (US$1.6 billion).
While ING Life Korea will maintain its name for the next five years, ING Group agreed to provide technical support and related know-how to its South Korean unit for one year.
MBK will invest around 900 billion won and secure 800 billion won from local securities firms and banks. ING Group agreed to reinvest some 100 billion won.
The move came after the Dutch insurer selected MBK as the preferred bidder for the sale of its South Korean unit earlier this month.
ING Group is required to sell over 50 percent of its stake in its South Korean unit before the end of the year and the rest by the end of 2016 under an agreement with the Dutch government that was signed in 2008 in exchange for rescue funds.