In a significant strategic move, Woori Financial Group (NYSE:WF) has confirmed its plans to acquire ABL Life Insurance Co., aiming to enhance its competitive edge in the financial sector.
According to the announcement, the deal involves the purchase of 3,106,736 shares, totalling approximately 265.36 billion KRW, which will grant Woori complete ownership of the insurance company.
The acquisition, which is currently pending regulatory approval, is structured as a cash transaction for 100% of ABL Life Insurance's shares.
This move is part of Woori Financial Group’s broader strategy to expand its footprint in the insurance industry, following a similar acquisition of Tongyang Life Insurance.
Woori's decision to integrate ABL Life Insurance as a subsidiary is expected to bolster its market presence by directly participating in the management of the insurance firm.
However, news of the acquisition has led to a slight downturn in Woori Financial Group's share price, which dipped over 1% to $37.33 in premarket trading.
The market's reaction suggests cautious investor sentiment as the group consolidates its holdings in the insurance sector.