TORONTO, June 21 -- Ontario Teachers' Pension Plan issued the following news release:
Ontario Teachers' Pension Plan (Teachers') today announced the successful completion of its acquisition of a 9.9% stake in Kyobo Life Insurance Co. Ltd. (Kyobo), the third-largest insurer in South Korea.
Teachers' is acquiring the stake from Korea Asset Management Corporation (KAMCO) for approximately US$400 million (KRW 468.1 billion) following a sales process initiated by KAMCO earlier this year.
Headquartered in Seoul, Kyobo is a privately held company that offers a broad range of life insurance products to its 4.5 million retail customers. This transaction is Teachers' first direct investment in Korea and was led by Public Equities' Relationship Investing group, which acquires significant minority stakes in both publicly-listed and private companies. Relationship Investing currently has a range of direct investments throughout Asia including in Hong Kong, China, Japan, Malaysia and Indonesia.
"Kyobo is a leading insurance brand with a strong customer base and financial performance," said Wayne Kozun (http://www.otpp.com/wps/wcm/connect/otpp_en/home/corporate+info/investment+team/public+equities), Senior Vice-President of Public Equities. "We believe our investment is a unique opportunity to acquire a sizeable stake in the Korean life insurance industry's most profitable company, and further expand our direct investments in Asia. We look forward to being a constructive partner with Kyobo, its management team and its shareholders."