Affinity Equity Partners has unloaded its remaining shares in Shinhan Financial Group, the second largest banking group in South Korea, for around 580 billion won ($424 million), pocketing nearly 300 billion won ($220 million) in capital gains.
After stock market close on Tuesday, the Asia-focused private equity firm sold 9,742,430 shares in Shinhan in a block deal.
The shares were offered at a discount of 2-25% off the closing price of 61,000 won per share. The stock represented a 1.94% stake in the parent group of Shinhan Bank.
Affinity cashed out as Shinhan’s share price approached 64,000 won, its highest level in over a decade, touched on Aug. 30, 2024, as domestic stock markets have been in a honeymoon rally since President Lee Jae-myung took office early this month.
In 2020, Affinity purchased 20,440,000 shares in Shinhan at 29,600 won per share for a total of 605 billion won, participating in its rights offering.
After raising its stake in the financing services group firm to as high as 9.74%, it has gradually reduced its holdings. Analysts said Affinity’s divestment will ease overhang concerns about Shinhan.
By Yeonhee Kim
yhkim@hankyung.com
