According to sources in the investment banking and credit card industries on Monday, MBK Partners has picked UBS as its advisory firm to lead the sale of Lotte Card.“MBK Partners is very determined to sell Lotte Card,” said an official from the IB industry who declined to be named.“After the year-end leadership reshuffle ends, Lotte Card’s sale process is expected to pick up speed in the first half of next year.”This is MBK Partners’ second bid to sell Korea’s fifth-largest card issuer, whose value is currently estimated to be about 2 trillion won ($1.4 billion).
Lotte Card boasts more than 9.5 million card holders as of October this year, the fifth-largest trailing behind its bigger rivals Shinhan Card Co.with 14.39 million, Samsung Card Co.with 13.04 million, Hyundai Card Co.with 12.49 million and KB Kookmin Card Co.with 12.39 million.It is also No.5 issuer with a 10.5% share in the local credit card payment market in terms of total transaction value.“Of all financial companies up for grabs now, Lotte Card is the only financial institution with more than a 10% market share,” said an official from the Korean financial industry.
Lotte Card Co.is expected to be up for grabs in the first half of next year in a second sale attempt by its largest shareholder MBK Partners, a North Asia-focused private equity firm, about two years after its first divestment bid failed.
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